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Treasurys mixed as stocks try for a recovery

Treasurys mixed as stocks try for a recovery

Treasury prices were mixed Thursday, as investors re-entered the stock market but continued to fret about the beleaguered financial sector.
Bank of America is reportedly getting more loans from the government to help it absorb losses from Merrill Lynch. Bank of America bought the embattled Wall Street investment firm last year around the same time Lehman Brothers Holdings Inc. went bankrupt _ an event that froze up the credit markets.
The credit markets have improved from late last year, but activity is still quite slow. Furthermore, more consumers and businesses are defaulting on their loans.
JPMorgan Chase & Co. on Thursday reported a small profit for the fourth quarter, but pointed to worsening credit conditions. Citigroup Inc. is expected to report a loss on Friday.
As the Dow Jones industrial average reversed steep losses and moved higher, the benchmark 10-year Treasury note slipped 3/32 to 113 15/32, and its yield rose to 2.22 percent from 2.20 percent. Yields move opposite to prices.
The two-year note fell 1/32 to 100 9/32, and its yield rose to 0.74 percent from 0.72 percent. The 30-year bond rose 5/32 to 131 28/32, and its yield was flat at 2.88 percent.
The yield on the three-month Treasury bill _ considered an extremely safe short-term investment _ was unchanged at 0.10 percent.
The cost of dollar loans between banks edged up, reflecting re-emerging concerns about the health of financial institutions. The interbank lending rate on three-month loans in dollars _ known as the London Interbank Offered Rate, or Libor _ rose less than 1 percentage point to 1.09 percent, according to the British Bankers' Association.


Updated : 2021-02-26 21:39 GMT+08:00