A stampede by investors into Treasurys helped the U.S. government borrow at record low rates for the second day straight.
The Treasury sold $24 billion in 10-year Treasury notes Wednesday afternoon at a yield of 2.14 percent. That's the lowest borrowing rate for an auction of 10-year notes on record, according to Treasury dealers.
It's the second day in a row that the Treasury was able to borrow at an all-time low rate since Standard & Poor's stripped the U.S. of its AAA credit rating. The Treasury sold $32 billion in three-year notes at a record low of 0.50 percent Tuesday.
Europe's debt problems, weak economic growth in the U.S. and the falling stock market have led many investors to seek safety in Treasurys, still considered a safe haven despite S&P's downgrade. As demand increase, Treasury prices are pushed higher and their yields fall.
In Wednesday trading, the 10-year Treasury note rose $1.21 for every $100 invested. The yield fell to 2.11 percent, down from 2.26 percent late Tuesday. It briefly touched 2.03 percent Tuesday afternoon, just under the previous low reached during the financial crisis in 2008.
In other trading, the yield on the two-year note dropped to 0.18 percent from 0.20 late Tuesday. The yield on the 30-year Treasury fell to 3.50 percent from 3.61 percent, while its price jumped $2.53 for every $100 invested.
The three-month Treasury bill paid a 0.01 percent yield. Its discount was 0.02 percent.