Treasurys advance

Prices for US debt increase as ongoing economic concerns curb investors' appetite for risk.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Ben Rooney and Julianne Pepitone, staff writers

Click the chart for current bond prices and yields.
What percentage of new contributions to your retirement account is going into stocks?
  • Zero
  • Less than 25%
  • 25% - 75%
  • More than 75%

NEW YORK ( -- Treasury prices rose Monday as the Dow hit a triple-digit selloff after a two-month rally and the Federal Reserve prepared to buy U.S. debt throughout the week.

Separately, a key interbank lending rate fell to a fresh all-time low.

Bonds have trended lower in recent weeks as stocks have advanced on signs the U.S. economy could recover sooner than expected. But many analysts worry that the optimism may be overdone given the depth of the recession.

The Dow Jones industrial average (INDU) lost 140 points, or 1.7%, with 30 minutes into the session. The S&P 500 (SPX) index lost 17 points, or 1.9%. Both the Dow and S&P 500 ended the previous session at four-month highs.

Treasurys, which are considered one of the most secure assets available, often rise when stocks fall as demand for safety outweighs investors' appetite for risk.

The Treasury announced it auctioned $31 billion in 13-week notes and $29 billion in 26-week bills Monday.

The U.S. central bank will purchase an undisclosed amount of Treasurys as part of its plan to lower interest rates on certain types of business and consumer loans. The Fed will also buy U.S. debt on Tuesday and Thursday.

Bond prices: The benchmark 10-year note was up 1-1/32 to 99 21/32 and its yield fell to 3.2% from 3.29%. Bond prices and yields move in opposite directions.

The 2-year note gained 5/32 to 99 30/32, and yielded 0.9%.

The 30-year bond was up 1-19/32 to 101 9/32, and its yield was 4.2%.

The yield on the 3-month was 0.16%.

Lending rates: A key bank-to-bank lending rate fell to its fifth straight all-time low Monday, suggesting the credit crisis is waning for many financial institutions.

The 3-month Libor fell to 0.92% from 0.94% Friday, according to The overnight Libor rate held steady at 0.23%.

Libor, the London Interbank Offered Rate, is a daily average of rates that 16 different banks charge each other to lend money in London. It is a closely watched benchmark and is used to calculate adjustable-rate mortgages. More than $350 trillion in assets are tied to Libor.

Last week, the 3-month rate dropped below 1% for the first time since 1986, when the British Bankers Association started keeping records. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Royal wedding: How much will it cost? Meghan Markle's wedding to Prince Harry could cost millions once security is included in the bill. See how the costs break down. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play