Treasury 10-Year Yields Drop to Record on European Debt Concern

Treasury 10-year note yields decreased to an all-time low as concern Europe’s sovereign-debt crisis will cripple the region’s financial institutions underpinned demand for the safest assets.

Yields on 30-year bonds touched the lowest level since January 2009 on speculation Federal Reserve Chairman Ben. S. Bernanke may signal in a speech this week that the central bank will purchase longer-duration debt while shedding shorter maturities. Ten-year notes are the most overvalued ever, according to a financial model created by Fed economists that includes expectations for interest rates, growth and inflation. Stocks dropped.