By IEVA M. AUGSTUMS, AP Business Writer

CHARLOTTE, N.C. – Interest rates rose in the bond market Friday following a surprisingly strong report on new home sales.

The Commerce Department reported that sales of new homes jumped 27 percent in March, the biggest monthly increase in 47 years. Analysts say sales were boosted by a federal homebuyers' tax credit that's set to expire soon.

There was also some relief that Greece decided to trigger a bailout package to help manage its debt.

Treasurys tend to fall on strong signals for the economy as investors anticipate higher interest rates and possibly inflation.

The yield on the benchmark 10-year Treasury note maturing in February 2020 rose to 3.82 percent in afternoon trading Friday from 3.78 percent Thursday. Its price fell 10/32 to 98 13/32. The yield on the 10-year note is linked to rates on mortgages and other consumer loans.

Greece's leaders said the country would tap a rescue package from the 15 other nations that use the euro and the International Monetary Fund. Many remained skeptical, however, that the bailout would provide a long-term solution to Greece's debt woes.

In other trading, the yield on the two-year note that matures in March 2012 rose to 1.08 percent from 1.04 percent. Its price fell 2/32 to 99 27/32.

The yield on 30-year bond that matures in February 2040 rose to 4.67 percent from 4.64 percent, while its price fell 13/32 to 99 11/32.

The yield on the three-month T-bill that matures July 22 rose to 0.15 percent from 0.14 percent. Its discount rate was 0.16 percent.