(Bloomberg) — Treasuries fell for the first time in three days as demand for haven assets dropped amid optimism that a bailout deal will help Greece avoid financial collapse.
U.S. government debt extended declines alongside German bunds after euro-area finance ministers were said to have agreed in principle to extend a 7 billion-euro ($7.6 billion) bridge loan to Greece.
“As the Greece situation passes, we’ll gravitate toward higher yields,” said Dan Mulholland, a trader at Credit Agricole SA in New York.
The 10-year note yield rose three basis points to 2.38 percent as of 9:56 a.m. New York time, according to Bloomberg Bond Trader data. The benchmark 2.125 percent security due in May 2025 fell 7/32, or $2.19 per $1,000 face amount, to 97 25/32.
German 10-year yields rose four basis points to 0.87 percent.