Treasury Yield Is Three Basis Points From Low on Europe

Treasury yields were three basis points from the record low set yesterday after Moody’s Investors Service cut the rating outlook for Germany, the Netherlands and Luxembourg, driving demand for the relative safety of U.S. debt.

Investors are willing to give up 62 basis points of yield to buy Treasuries instead of government securities in other nations, based Bank of America Merrill Lynch’s U.S. Treasury Master index and Global Sovereign Broad Market Plus index. The difference is the most in almost four weeks. The U.S. plans to sell $99 billion of notes over three days starting with a two-year auction today.