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Spanish banking worries send traders into Treasurys; 10-year Treasury drops to 1.62 percent
NEW YORK (AP) ' A key borrowing rate is sinking to a 66-year low as fear over Europe roils global markets.
The yield on the 10-year Treasury dropped to 1.62 percent in Wednesday trading as investors shifted money into Treasurys and other government bonds considered safe.
The flight to Treasurys was spurred by reports that the European Central Bank rejected a plan to help Spain pay for a banking bailout.
The price of the 10-year Treasury jumped $1.12 for every $100 invested. Rising demand for bonds lowers their yields.
Worries that troubles in Europe will set off a wider financial crisis have driven traders into Treasurys in May. The 10-year Treasury started the month paying 1.95 percent.