MW: Treasurys falter as worries over Dubai debt eases
By Laura Mandaro, MarketWatch
SAN FRANCISCO (MarketWatch) -- Treasurys of most maturities fell Monday, sending yields higher, as investors grew less worried a Dubai conglomerate's debt struggles would cause wider financial problems.
Giving back some of the prior session's gains, prices on the 10-year Treasury note sank, sending yields (UST10Y 3.23, +0.04, +1.22%) 3 basis points higher to 3.24%.
Yields on the 30-year bond (UST30Y 4.22, +0.02, +0.40%) rose 1 basis point to 4.22%.
Prices on the 2-year note, which closely track market expectations for Federal Reserve rate moves, edged higher. Yields on the 2-year note yield (UST2YR 0.69, +0.02, +2.69%) fell 1 basis point to 0.68%.
Yields on bonds move inversely to prices.
Treasurys had gained Friday as investors returning from Thursday's Thanksgiving holiday sought the safety of U.S. government debt amid fears a potential debt default by Dubai World, a real estate conglomerate that's seeking to delay payments on some of its $60 billion in borrowings, will cause more big losses at global banks.
On Monday, Asia markets responded positively to a statement by the United Arab Emirates' central bank, which said it would support local and international banks exposed to Dubai debt.
But a Dubai government official later disclaimed responsibility for the debts of its Dubai World conglomerate. Read more on Dubai reaction.
"Dubai is still the center of the financial news, but the frenzy has subsided versus last week," said analysts at RBS Securities in written comments.
Stock opened mildly lower on Wall Street after futures pointed to a rise. The S&P 500 (SPX 1,095, +3.87, +0.36%) started off 2 points lower at 1,089.
