Treasury 10-Year Yield Near Three-Week Low as Noda Counters S&P

Treasury 10-year yields stayed within three basis points of the lowest in three weeks as bondholders said U.S. debt will still draw investors even after its rating outlook was cut by Standard & Poor’s.

Two-year yields reached the lowest since March 24. U.S. debt is “attractive,” Japan’s Finance Minister Yoshihiko Noda said at a press conference in Tokyo today, which was reiterated by Economic and Fiscal Policy Minister Kaoru Yosano. Pacific Investment Management Co., which runs the world’s biggest bond fund, said the Treasury market will still be a place for other nations to invest. Treasuries have benefitted from their status as a relatively safe investment as the euro area grapples with a sovereign-debt crisis.