NEW YORK (AP) — Investors are slowly buying up U.S. Treasurys as they await details from European leaders on how they plan to support struggling countries in the region like Spain.
Last week, European Central Bank head Mario Draghi pledged to do whatever was needed to protect the euro. That launched a stock market rally, leading investors to abandon safe-haven assets like U.S. government bonds.
On Monday, the 10-year Treasury note came back in favor with investors, sending its yield down to 1.50 percent, from 1.54 percent Friday. Its price rose 37.5 cents per $100 traded.
Draghi will have a chance to back up his words with actions when the central bank meets Thursday.
In the weeks leading up to Draghi's statement, concerns about the 17 countries that use the euro had intensified on evidence that economies across the euro zone face deepening recessions.
Investors are also being cautious ahead of the Federal Reserve's meeting this week. There's hope building that the Fed will take new steps to stimulate the economy in coming months. The Fed will release its statement on interest rate policy Wednesday afternoon.
In other trading, the yield on the 30-year bond fell to 2.57 percent from 2.61 percent Friday. The price went up by $1.25 for every $100 invested.
The yield on the two-year note fell to 0.22 percent, from 0.26 percent. The three-month T-bill's yield also fell to 0.10 percent from 0.11 percent Friday.