Bond prices climb as investors look for safety

AP News
|
Posted: Aug 02, 2011 3:40 PM
Bond prices climb as investors look for safety

Treasury prices are rising, sending their yields lower, on more signs that the economy is deteriorating.

The yield on the 10-year Treasury note fell to 2.62 percent from 2.75 percent late Monday. It is now at its lowest level since November. Its price rose about 91 cents for every $100 invested.

The Commerce Department said on Tuesday that consumers cut their spending in June for the first time in about two years. Several big companies, including Archer Daniels Midland Co., also reported earnings below analysts' expectations. Those concerns overshadowed news that the Senate passed a bill to avoid a catastrophic default on the government's debt.

The yield on the 30-year bond fell to 3.93 percent from 4.08 percent. Its price jumped $2.75 per $100 invested.