US Treasury prices surge most since financial crisis as traders seek out low-risk investments
Investors flooded into the U.S. Treasury market in a way not seen since the depths of the financial crisis, causing the yield on the benchmark 10-year Treasury note to fall below 2 percent for the first time in more than a year.
The yield on the benchmark 10-year Treasury note plunged from 2.20 percent Tuesday to as low as 1.91 percent Wednesday, its lowest level since June 2013. That's a huge move in the context of the bond market.
Investors were spooked by two reports released Wednesday that pointed to signs of weakness in the U.S. economy. Also, foreign investors have been buying U.S. Treasurys much more than they have previously as they worry that Europe might slip into another recession.