NEW YORK (CNNMoney.com) -- After ending last week with a sell-off of Treasurys, investors swung back to U.S. government bonds Monday when a move by the Bank of Japan reignited jitters about the global economy.
The bond buying spree sent Treasury yields tumbling, with the 10-year note yielding 2.53%, down from 2.64% late Friday.
Meanwhile, the yield on the 2-year note was 0.5%, close to an all-time low, and the 5-year yield slid to 1.39%. The yield on the 30-year bond fell to 3.58% from 3.69%.
Bond yields and prices move in opposite directions.
In an emergency meeting Monday morning, Japan's central bank announced steps to loosen its monetary policy to lift the country's struggling economy.
The central bank said it would hold its key-interest rate at 0.1% and announced a new ¥10 trillion, or $117.15 billion, six-month loan program for financial institutions. That emergency assistance adds to the already ¥20 trillion it has been offering in three-month loans.
The move thrust fears about a slowing economic recovery back into the spotlight, driving investors once again to the low-risk appeal of U.S. government bonds.
On Friday, investors had sold off Treasurys after Federal Reserve Chairman Ben Bernanke said the central bank is prepared to take "unconventional measures" to prop up the U.S. economy.
Monday's rebound for Treasurys may just mean investors are coming back from the weekend in "bargain hunting" mode after prices fell on Friday, said Kim Rupert, fixed income analyst with Action Economics.
"I think the market became oversold on Friday and we're bouncing back from those declines to some extent," she said.
She expects to see demand for Treasurys heightened by more downtrodden economic reports later this week, including weak readings on manufacturing, services and the government's highly anticipated jobs report on Friday.
The week's first economic reports on Monday showed that while U.S. consumers slightly revved up their spending in July, their income grew less than economists had expected during the month.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.80%||3.88%|
|15 yr fixed||3.20%||3.23%|
|30 yr refi||3.82%||3.93%|
|15 yr refi||3.20%||3.23%|
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