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.
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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.