Debt Consolidation and Management Guide

December 19, 2008

Investors drive Treasury yields to new lows even with record debt auctions planned next week

Filed under: News & Articles

NEW YORK - Investors poured more money into Treasurys on Thursday, sending yields to record lows again even as the Treasury Department said it would sell record amounts of notes next week.

Usually, a boost in supply would dampen prices and raise yields. However, after the Federal Reserve said Tuesday that it was considering buying long-term government debt, investors are not yet worried about a drop-off in demand.

The 10-year Treasury note’s yield sank as low as 2.04 percent, and the 30-year bond’s yield dropped as low as 2.52 percent. Low yields are good for borrowers with rates tied to Treasurys, but bad for investors in funds that are swarming to Treasury issues for safety.

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