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The yield for benchmark 10-year Treasuries fell to an intra-day low of 1.53%, which was the lowest level in more than 200 years.
US bond yields sank to record lows today as disappointing US economic data, fears over the Spanish banking system and concerns Greece could be forced out of the euro zone drove up demand for safe haven investments.
According to Reuters, the yield for benchmark 10-year Treasuries fell to an intra-day low of 1.53 percent, which was the lowest level in more than 200 years.
The yield ended the session at 1.57 percent, down five basis points on the day.
Bond yields always move in the opposite direction of prices, so strong demand for bonds pushes down the yield.
Global shares, oil prices and the euro have weakened this week as investors snap up government bonds, which are seen as safer investments during periods of economic turmoil.
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“The continued rally is evidence by flight to quality that is being exacerbated by the lack of other safe assets,” Michael Pond, co-head of interest-rate strategy in New York at Barclays Plc, was quoted by Bloomberg as saying.
“The lack of progress in Europe is causing increased angst in the Treasury market.”
Disappointing US economic data spooked investors and added to concerns about the worsening euro zone crisis, the Wall Street Journal said.
The US government revised down first quarter economic growth to 1.9 percent from 2.2 percent and jobless claims rose, fueling fears that the world’s largest economy was not growing as strongly as many thought.
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