Setback in Greek deal sends investors into bonds

NEW YORK — The latest setback in Greece's efforts to avoid defaulting on its debt sent investors rushing back into U.S. Treasurys Friday.

The yield on the benchmark 10-year Treasury note fell back below 2 percent as its price rose 56 cents per $100 invested. The yield was 1.98 percent in late trading compared with 2.04 percent late Thursday.

Investors had dumped Treasury debt Thursday after Greece seemed to make a breakthrough with its creditors by agreeing to deep cuts in public spending. But demands for even more cuts and assurances from Greece's European partners prompted investors to seek relatively safe places to stash cash, pushing Treasury prices higher and their yields lower.

The yield on the 30-year Treasury bond fell to 3.13 percent from 3.19 percent.

In other trading, the yield on the two-year note edged up to 0.28 percent. The three-month T-bill paid a yield of 0.08 percent.