Ten-year Treasury rate sinks near all-time low
Thursday, May 17, 2012
A benchmark Treasury yield neared an all-time low Thursday as worries over Europe and a weak report on the U.S. economy send traders into the safety of U.S. government bonds.
At the end of the regular trading day, the yield on the 10-year note fell to 1.69 percent. That's the lowest end-of-day yield on Federal Reserve records dating back to 1953. The price rose 59.3 cents for every $100 invested.
According to other financial data providers, including Dow Jones and Bloomberg, the yield on the 10-year dipped slightly lower, to 1.67 percent, at other points in the trading day last September.
Fears that Greece will drop the euro and set off a wider financial crisis have driven traders into the Treasury market in recent weeks. Higher demand for Treasury prices pushes their yields down.
Another push came Thursday when the Federal Reserve Bank of Philadelphia said manufacturing slowed in its region for the first time in eight months. That report helped send the 10-year yield down from 1.76 percent late Wednesday. The 10-year yield is used as a benchmark lending rate for mortgages and corporate loans.
In other Treasury trading, the yield on the 30-year bond fell to 2.79 percent from 2.90 percent Wednesday. Its price jumped $2.15. The yield on the two-year note rose to 0.31 percent from 0.29 percent.
In the market for short-term bills, the yield on the three-month T-bill was 0.09 percent.
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