Treasuries Rally, Pushing Two-Year Note Yields to Record Low

Treasuries rallied, driving 2-year note yields to another record low and sending those on 10-year securities below 2.50 percent for the first time since March 2009 after an industry report showing sales of existing homes tumbled in July bolstered concern the economy is faltering.

The difference between the two-year note yield and the Federal Reserve’s target lending rate fell to the narrowest level since December 2008, when the central bank adopted a range of zero to 0.25 percent. The government’s $37 billion auction of two-year notes attracted a record low yield as investors sought refuge from uncertainty.