Libyan Violence Stifles Demand for Bonds, as Well as Stocks

Violence in Libya stifled demand for U.S. 10-year bonds Wednesday, pushing prices down 22 cents per $100 invested.

The yield on the 10-year Treasury, which moves in the opposite direction of price, rose to 3.49% Wednesday from 3.46% Tuesday after falling from 3.62% a week ago.

The declining bond prices come amid widespread violence between military forces and anti-government protesters in the Libyan capital, Tripoli. Nearly 300 people have been killed in the uprising so far, according to the New York-based Human Rights Watch.

The tensions in Libya caused investors to shy away from stocks, as well as the Treasurys, while oil prices briefly exceeded $100 a barrel on the news.

Meanwhile, the Dow Jones Industrial Average (INDU) lost 107 points, or 0.9%, to close at 12,106 Wednesday. The blue-chip index was had declined as m 149 points in midday trading before paring its loss.

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Markets

NASDAQ 6,936.58 80.06 1.17%
S&P 500 2,675.81 23.80 0.90%
DJIA 24,651.74 143.08 0.58%
NIKKEI 225 22,901.77 348.55 1.55%
HANG SENG 29,050.41 202.30 0.70%
DAX 13,315.79 212.23 1.62%
USD (per EUR) 1.18 0.01 0.47%
USD (per CHF) 0.99 0.00 -0.33%
JPY (per USD) 112.50 -0.21 -0.18%
GBP (per USD) 1.34 0.01 0.63%

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