Treasurys Rise On Signs Of Slowdown In Europe

By Salon Staff

Published March 2, 2012 4:18PM (EST)

Traders are bidding up U.S. Treasury debt after economic data from Europe stirred fears of a global slowdown and boosted demand for the ultra-safe investments.

Germany said Friday that retail sales there plunged in January, stoking fears that Europe is headed for a deep, regional recession.

Germany has the strongest economy of any European nation. Its growth offsets contraction in weaker nations, shoring up the region's economy.

The yield on the 10-year Treasury note fell to 1.98 percent as of 10:40 a.m. Eastern time, from 2.03 percent late Wednesday. Bond yields fall as their prices rise.

Treasury prices had decreased during the previous three sessions on speculation that the Federal Reserve probably won't launch another round of bond-buying. Encouraging economic signs and rising gas prices make such intervention less likely.

Salon Staff

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