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A stampede into Treasurys is helping the US government borrow at all-time low rates
NEW YORK (AP) ' A stampede by investors into Treasurys is helping the U.S. government borrow at record low rates.
The Treasury sold $24 billion in 10-year Treasury notes Wednesday afternoon at a yield of 2.14 percent. That's the lowest borrowing rate for an auction of 10-year notes on record, according to Treasury dealers.
It's the second day in a row that the Treasury was able to borrow at an all-time low rate since Standard & Poor's stripped the U.S. of its AAA credit rating. The Treasury sold $32 billion in three-year notes at a record low 0.50 percent Tuesday.
In Wednesday afternoon trading, the 10-year Treasury note is up $1.09 for every $100 invested. The yield fell to 2.12 percent, down from 2.26 percent late Tuesday. Bond yields fall when prices rise.