Government bond prices rose Wednesday following strong demand for 10-year Treasury notes at an auction.
The Treasury Department was able to sell 10-year notes at the lowest yield since November. That signals strong demand for the most secure kinds of debt securities. The yield on the 10-year note is a benchmark for many kinds of business and consumer loans including mortgages.
The Treasury sold $21 billion in 10-year notes at a yield of 2.97 percent.
The yield on 10-year notes already in circulation fell to 2.94 percent from 3.01 percent late Tuesday. The price on the note rose 53.12 cents for every $100 invested. When bond prices rise, their yields fall.
Ever since mid-April, high oil prices and bad weather has led to concerns that the U.S. economy is stalling. That's sent nervous traders into the safe haven of government bonds. That's pushed prices higher and lowered borrowing rates for the government.
There was also strong demand for three-year notes at an auction Tuesday. An auction of 30-year bonds is scheduled for Thursday.
In other trading, the yield on the 30-year bond fell to 4.19 percent from 4.26 percent. Its price rose $1.12 per $100 invested. The yield on the two-year note fell to 0.38 percent from 0.41 percent.
In the market for short-term Treasury bills, the yield on the three-month T-bill was unchanged at 0.03 percent. Its discount was 0.04 percent.