Treasury prices jump as stocks plummet
NEW YORK – Government bond prices are rising as a stock market rout is sending traders into assets considered safe.
Investors are selling stocks Monday in response to a downgrade of U.S. long-term debt by the rating agency Standard & Poor's. S&P took away the country's AAA rating late Friday and downgraded it to AA+.
The flight from riskier assets like stocks is sending traders into Treasurys. They're buying the same bonds S&P downgraded. The Treasury market remains one of the world's deepest markets at $9.3 trillion. Treasurys are also considered the easiest security to buy and sell quickly.
In Monday afternoon trading, the price of the 10-year Treasury note is up $1.81 for every $100 invested. Its yield sank to 2.36 percent from 2.57 percent late Friday.