Treasury 10-Year Note Yields Fall to 2011 Low on Housing, Output

Treasuries rose, pushing 10-year note yields to their lowest level in 2011 as U.S. housing starts unexpectedly fell in April and industrial output stalled.

Bill rates remained close to record lows with the Treasury reducing sales to conserve borrowing capacity after the U.S. exceeded its borrowing limit yesterday. The Treasury sold $28 billion of four-week bills today at a rate of 0.025 percent, compared with record sales of $40 billion weekly as recently as April. European finance ministers for the first time floated the idea of talks with bondholders over extending Greece’s debt-repayment schedule.