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AP / TIM PARADIS, AP Busi · Guest

NEW YORK (AP) -- Treasury prices mostly rose Friday after
steeper-than-expected losses at insurer AIG stirred fresh concern
about strains still taxing the global financial system and as stocks
retreated following another advance in oil prices.
American International Group Inc. revealed plans to raise
$12.5 billion in the months to come as the company tries to recover
from declines in the value of some credit market investments. The
news weighed on the equity markets, as did oil's first foray above
$126 per barrel, which came early Friday; the bond market is often
the beneficiary of a decline on Wall Street.
Higher oil prices again stirred inflation concerns for both
stock and bond investors. The threat of rising prices often hits
bonds because fixed-income investments become less attractive if
they can't keep up with inflation.
John Spinello, bond strategist at Jefferies & Co., said that
investors appeared to take their queues from the stock market's
pullback.
"There was a little bit of drift -- probably some
profit-taking as the stock market came back," he said.
Still, Friday's Treasury session was quiet with light
volume, Spinello said.
The benchmark 10-year Treasury note rose 3/32 to 100 28/32
and its yield fell to 3.77 percent from 3.78 percent late Thursday,
according to BGCantor Market Data. Bond prices move in the opposite
direction of yields.
The 30-year long bond rose 10/32 to 97 16/32 and yielded
4.53 percent, down from 4.54 percent late Thursday.
The 2-year note was down 1/32 at 99 25/32 and its yield rose
to 2.24 percent from 2.22 percent late Thursday.
In late trading, the 10-year yield rose to 3.78 percent. The
yields of the 30-year and 2-year notes remained unchanged from the
session's close.
The yield of the 3-month Treasury bill was 1.61 percent and
the discount rate was at 1.58 percent.