Treasury yields tumble on global economic fears

By Annalyn Censky, staff reporter

NEW YORK ( -- 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. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
View rates in your area
Find personalized rates:
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET


Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.