Treasury yields rise as corporate earnings improve

Treasury yields rose Tuesday as investors decided they were confident enough to jump into the stock market.

The yield on the 10-year Treasury note, the government's benchmark U.S. bond, rose to 1.63 percent from 1.56 percent Monday.

The yield is the interest rate the government has to pay to persuade investors to buy U.S. bonds. When the yield goes up, it's usually because investors are feeling more confident in the economy and are more willing to take their money out of safe-bet bonds and take a chance on stocks.

On the stock market Tuesday, all the major indexes rose as investors got excited about higher second-quarter earnings from U.S. companies.

Bond yields are still historically low because of investors' unease about the economy. But Tuesday's closing is a big change from recent days. Last week, the yield closed as low as 1.47 percent. Its lowest close on record, 1.39 percent, was the week before that.

The price of a bond moves inversely to the yield. The price of the 10-year note fell 59.4 cents for every $100 invested.

The yield on the 30-year bond rose to 2.72 percent from 2.65 percent. The price fell $1.59 for every $100 invested.

The yield on the two-year note rose to 0.27 percent from 0.24 percent. The yield on the three-month bill rose to 0.10 percent from 0.08 percent.

Source: http://news.yahoo.com/treasury-yields-rise-corporate-earnings-193850044.html

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