NEW YORK (MarketWatch) — Treasury prices declined Tuesday, pushing 10-year yields to their highest levels in more than two months as the euro zone’s long-delayed second bailout package to Greece won approval.

Still, analysts said the decline was limited because of concerns about the long-term viability of the plan, as well as the possible effects on other indebted European countries.

Bonds stayed down after the government’s auction of 2-year notes /quotes/zigman/4868354/delayed 2_YEAR +5.71% .

Yields on 10-year notes /quotes/zigman/4868283/delayed 10_YEAR +3.29% , which move inversely to prices, rose 7 basis points to 2.07%. The securities haven’t closed above 2.06% since early December. A basis point is one-hundredth of a percentage point.

Thirty-year yields /quotes/zigman/4868063/delayed 30_YEAR +2.03% increased 7 basis points to 3.21%.

Five-year yields /quotes/zigman/4868109/delayed 5_YEAR +6.08% added 6 basis points to 0.92%, their highest level on a closing basis in about two months.

“Treasurys were under pressure overnight on the Greek bailout, but admittedly the market is trading better on the news than we might otherwise have expected,” said David Ader and Ian Lyngen, bond strategists at CRT Capital Group.

For the longer term, they said, “the obvious risk is that Greece could still need additional bailouts or restructuring.”

In a marathon meeting Monday, finance ministers and other top European officials agreed to provide up to 130 billion euros ($171.9 billion) of extra financial aid to Greece.

Private-sector bondholders will take a haircut of more than 53% on around €200 billion worth of privately held Greek government debt, and Europe’s national central banks agreed to forgo any profits on their holdings of government bonds. Read more on Greece’s bailout deal. ...

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