Bond yields fall on Europe fears

Bond yields dip despite strong jobs report. Concerns over Europe's debt woes drove bond yields of 10-year Treasury below 2 percent and 30-year Treasury to just above 3 percent.

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    A trader watches the action in the 10-Year Treasury bond options pit at the CME Group in Chicago this past August. On Jan. 6, 2012, Treasury bond yields fell on growing concerns about Europe's debt crisis.
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US government debt prices inched up Friday as worries over Europe's debt crisis drove traders into the Treasury market.

The price of the 10-year Treasury note rose 31.2 cents for every $100 invested in Friday trading. Its yield dipped to 1.97 percent from 2 percent late Thursday.

A strong jobs report had pushed Treasury prices lower Friday morning. The government said the unemployment rate dropped to 8.5 percent last month and U.S. employers added 200,000 net jobs.

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But concerns about Europe's debt troubles soon lured traders back into Treasurys and drove bond yields down. Italy's borrowing costs jumped above 7 percent, and the euro fell to a 16-month low against the dollar.

In other Treasury trading, the price of the 30-year bond rose 93.7 cents for every $100. The higher price lowered its yield to 3.01 percent from 3.07 percent late Thursday. The yield on the two-year Treasury note remained at 0.26 percent, the same as the day before.

In the market for short-term bills, the three-month Treasury bill paid a yield of 0.01 percent.

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