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Originally published Wednesday, July 25, 2012 at 1:13 PM

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Treasury yields inch up as stocks rise

The yield on the government's benchmark bond edged up slightly Wednesday, but it was hardly a convincing sign that investors are getting back into stocks. Yields on other important government bonds, including the 30-year bond, held steady.

The Associated Press

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The yield on the government's benchmark bond edged up slightly Wednesday, but it was hardly a convincing sign that investors are getting back into stocks. Yields on other important government bonds, including the 30-year bond, held steady.

The yield on the 10-year Treasury note rose to 1.40 percent late Wednesday. That was up slightly from the day before, when it hit a record low of 1.39 percent.

The yield represents the interest rate that the U.S. government has to pay to persuade investors to buy its bonds. When investors are nervous about the economy, they tend to plow money into bonds, pushing yields lower.

The price of the 10-year Treasury fell 12.5 cents for every $100 invested. The price moves inversely to the yield.

Government bonds are currently paying low yields because investors are unnerved by sluggish economic growth in the U.S. and a spiraling debt crisis in Europe. Wednesday brought mixed news in stocks.

The Dow Jones industrial average was up in late-afternoon trading after two companies in the Dow index, Boeing and Caterpillar, reported stronger earnings. The two other major stock indexes, the Standard & Poor's 500 and the Nasdaq composite index, fell slightly.

In other trading, the yield on the 30-year bond held steady at 2.46 percent. The price fell 6.25 cents for every $100 invested.

The yield on the two-year note also held steady, at 0.21 percent. The three-month T-bill held steady at 0.10 percent.

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