NEW YORK (CNNMoney.com) -- Treasury prices continued to surge Tuesday, pushing the 2-year note's yield to a record low and the 10-year note's yield below 3% for the first time since April 2009, as the looming expiration of Europe's bank lending program boosted demand for the safety of government debt.
What prices are doing: The benchmark 10-year note jumped 19/32 to 104-21/32 and its yield sank to 2.96% from 3.03% on Monday. Bond prices and yields move in opposite directions.
The 30-year bond climbed 1-10/32 to 107-26/32 with a yield of 3.93%. The 2-year note gained 2/32 to 100-2/32 and its yield was 0.61%. Earlier, the 2-year note's yield fell to 0.59%, a record low.
What's moving the market: The European Central Bank's year-long lending program to boost liquidity expires Thursday. As banks in the euro zone gear up to pay back €442 billion, investors are nervous that end of the program could further rock the financial system.
Because Treasurys are backed by the U.S. government, they are viewed as low-risk investments and are attractive during times of economic uncertainty.
What analysts are saying: "Treasury rates this low typically signal a real slowdown in economic activity, or even a recession," said Peter Cardillo, chief market strategist at Avalon Partners. "But I think this is a heightened fear factor and a flight to quality as opposed to any real economic meltdown."
He added that investors are concerned that when banks pay back the loans, the market will face another credit crunch.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.84%||3.80%|
|15 yr fixed||2.95%||2.90%|
|30 yr refi||3.84%||3.81%|
|15 yr refi||3.01%||2.96%|
Today's featured rates:
Syriza's victory in Greek elections has sent a charge of worry through Europe, and puts Greece's economic future in doubt. So what happens next? More
First introduced in 2007 as way of sifting through Twitter's newsfeed, the hashtag has since spawned new tech businesses and become a pop culture phenom that retailers are cashing in on. More
Target-date funds have become a wildly popular option among those seeking a hands-off approach to retirement investing. But not all of these funds are created equally. More