NEW YORK (AP) -- Treasurys prices fell Tuesday, sending their yields slightly higher, after Federal Reserve Chairman Ben Bernanke dashed hopes that the central bank would be buying more bonds soon to help the economy.
In testimony to the Senate Banking Committee, Bernanke said the bank was ready to take further action if economic growth flags, but offered no hint that it was ready to launch another round of Treasury purchases.
Investors had been hoping for more buying from the central bank, and sold Treasurys on the news. The price of the benchmark 10-year Treasury note fell 25 cents for every $100 invested. The yield, which moves in the opposite direction, rose to 1.50 percent from 1.46 percent late Monday.
In his midyear report to Congress, Bernanke said economic growth in the April-June quarter likely weakened from the roughly 2 percent rate in the first quarter. And he expressed concern that Congress might not strike a budget deal to avert automatic tax rises and spending cuts on Jan. 1. He warned that that could "knock the recovery back into a recession."
Still, the Dow Jones industrial average, after slipping earlier in the day, rose 78 points to close at 12,805. Investors seemed to focus more on strong earnings reports from Mattel, Coca-Cola and other big companies than on the Chairman's comments.
The price of the 30-year Treasury bond fell 68.8 cents for every $100 invested. Its yield rose to 2.59 percent from 2.56 percent late Monday.
The yield on the two-year Treasury note rose to 0.25 percent from 0.23 percent. The yield on the three-month Treasury bill rose to 0.10 percent from 0.09 percent.