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WASHINGTON — The yield on the 10-year Treasury note traded below 2 percent after worsening concerns about Europe's debt crisis caused a sell-off on global stock markets.
U.S. stocks fell sharply Tuesday, following European markets lower. The Dow Jones industrial average lost as many as 307 points in morning trading but erased half of those losses by early afternoon. Cash flowed into lower-risk investments such as Treasurys.
The yield on the 10-year Treasury note was 1.98 percent at 2:45 p.m., compared with 2 percent late Friday. U.S. markets were closed Monday for Labor Day. The price of the note rose 9 cents for every $100 invested.
Some traders hope that weak economic data will prompt the Federal Reserve to buy Treasurys, lowering their yields even further.
