Interest rates are plummeting in the bond market as stocks swoon on the latest worries about Europe's debt crisis.
Traders barreled into Treasurys as the Dow Jones industrial average took a spectacular plunge of nearly 1,000 points in early afternoon trading. Stocks quickly recovered the worst of their losses but the Dow was still down 300 points by late afternoon.
The losses were made worse by computer-driven trading, and were driven by worries that Greece's debt crisis would spread.
The yield on the 10-year Treasury note fell to 3.40 percent Thursday afternoon, sliding from 3.54 percent late Wednesday. Its yield dipped as low as 3.27 percent, their lowest level in seven months.