U.S. Treasury yield at 2 1/2-year low

NEW YORK, Nov. 26 (UPI) -- U.S. Treasury bond prices rallied strongly Monday as increased credit fears sank the benchmark 10-year note to its lowest yield in 2 1/2 years.

The benchmark 10-year U.S. Treasury bond added 1 21/32, yielding 3.81 percent.

The 10-year yield has not been this low since June 2005.

The 30-year bond was up 3 8/32, yielding 4.26 percent.

Prices and yields move in opposite directions.

"It's largely just a continuation of the fear-based trade -- fear of what's going in the credit markets and the economy, and fear of missing out on the rally," Stone & McCarthy Research Associates market strategist John Canavan told The Wall Street Journal.

Copyright 2007 by United Press International.