Stocks Rise on Economic Reports and Greek Bailout Request

With Greece formally requesting a bailout package and positive economic reports in the U.S., stocks across Europe and the U.S. rose Friday, April 23, but uncertainties over Greece’s long-term stability dented the bond market.

An early rebound in Greek bonds faltered as investors focused on a budget deficit that would still be around 10% of GDP this year even after a round of cuts by the government and $60 billion in aid is dispensed by the European Union (EU) and the International Monetary Fund (IMF). The yield on the Greek two-year note rose to 10.23%, after falling to 9.63% earlier Friday.

United Sates Treasury debt prices fell on Friday as government reports on orders for durable goods and new home sales were positive. The two-year yield climbed 4 basis points to 1.075 and the benchmark 10-year yield gained 5 basis points to 3.82%