Treasuries extend losses

© Scanpix/AFP

Treasury prices dropped on Tuesday increasing borrowing costs for the 4^th day out of five as response to news from Europe. Yields for 10-year bonds surged 4 b.p. reaching 2.07%.  Growth in yields were also stimulated by Standard & Poor's announcement to place 15 Eurozone countries on Creditwatch. 30-year borrowing costs added 3 b.p. to 3.04% while 2-year bond yields dropped 2 basis points to 0.25%.