Treasurys rise, ending strongest quarter since '08

AP News
Posted: Sep 30, 2011 3:48 PM
Treasurys rise, ending strongest quarter since '08

Treasury prices rose Friday, ending a quarter of extraordinarily strong demand for U.S. government debt securities.

The yield on the 10-year note was 1.91 percent at 3:30 p.m., versus 1.98 percent late Thursday. Its price rose 69 cents per $100 invested.

The yield, which is used to set interest rates on mortgage and other kinds of loans, plunged to a record low of 1.71 percent this month as investors piled money into lower-risk investments. At the beginning of the quarter the yield was much higher, 3.17 percent.

The yield on the 30-year bond fell to 2.90 percent from 3.02 percent late Thursday. That yield was 4.38 percent at the beginning of the quarter.

The yield on the two-year note was 0.25 percent, down slightly from 0.26 percent late Thursday.

Investors shifted money into Treasurys this summer as other markets turned volatile. Fears about Europe's debt crisis and the global economy battered stocks and commodities. The S&P 500 index fell nearly 14 percent in the third quarter, its worst quarterly performance since late 2008 at the height of the financial crisis.

The yield on the three-month T-bill was 0.01 percent, unchanged from late Thursday. Its discount wasn't available.