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Treasury prices rise on Egyptian unrest

Treasury prices rise on Egyptian unrest

Treasury prices rallied Friday as concerns over Egypt led investors to seek safer investments.
The price of the 10-year Treasury note rose 43.8 cents per $100 invested. Its yield, which moves in the opposite direction, fell to 3.34 percent from 3.38 percent late Thursday.
Protests in Egypt escalated Friday and spooked investors. Stocks fell, while less risky investments like Treasurys, the dollar and gold rose.
The Egyptian military tried to restore order Friday. Riot gas, rubber bullets and water cannons were used to disperse crowds who had gathered to challenge Egyptian president Hosni Mubarak's 30-year rule. Thousands defied a curfew, and Internet and cell phone service was cut off.
Investors worry that the collapse of the Tunisian government earlier this month may lead to other challenges of Middle Eastern governments.
"Investors don't know what it could evolve into, how big it can get, and that is creating anxiety among investors," said John Spinello, a bond strategist at Jefferies & Co.
Earlier Friday, the Federal Reserve bought $8.36 billion in Treasury bonds as part of its $600 billion bond-buying program designed to keep interest rates low, encourage spending and fuel economic growth. The central bank has bought $345 billion of Treasury bonds since September.
In other trading, the price of the 30-year note added 65.6 cents per $100 invested, while its yield fell to 4.53 percent from 4.57 percent late Thursday. The yield on the two-year note fell to 0.56 percent from 0.59 percent.