Treasuries Surge as 10-Year Note Sale Draws Record Low Yield
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Treasuries rallied as a $24 billion 10-year note sale drew higher-than-average demand and a record low yield in the first offering of the maturity following Standard & Poor’s downgrade of U.S. credit Aug. 5.
U.S. 10-year yields fell for a third straight day after the Federal Reserve offered yesterday a dimmer view of the economy than it did in June. The extra yield Treasury investors get to hold 10-year notes instead of two-year debt was the narrowest in more than two years on investor concern the European debt crisis would worsen. Stocks slumped, erasing yesterday’s gains.