NEW YORK (AP) — Renewed worries about Spain's economy sent traders into the safety of U.S. government debt Monday, knocking a key Treasury rate to a record low.
The surge in demand briefly pushed the 10-year Treasury yield to an all-time low of 1.40 percent in early Monday trading, according to the data provider FactSet. When bond prices climb, yields fall.
Spanish government borrowing costs shot up Monday following news over the weekend that many regional governments would likely need support from the central government. The Spanish government is already struggling to rescue the country's troubled banks as its economy shrinks.
Treasury yields slowly crept up throughout the day. By the end of regular trading, the 10-year yield was at 1.44 percent, down from 1.46 percent late Friday. Its price rose 21.8 cents for every $100 invested.
The early drop in the 10-year Treasury yield broke a mark set June 1, when a dismal U.S. jobs report rattled financial markets and knocked the yield as low as 1.44 percent.
In other trading Monday, the price of the 30-year Treasury bond rose 78.1 cents for every $100 invested. The yield fell to 2.51 percent, down from 2.55 percent late Friday. The yield on the two-year note edged up to 0.22 percent from 0.21 percent.
In the market for short-term Treasury bills, the three-month T-bill paid 0.10 percent.