U.S. 2-yr Treasury yield at 4-yr low on safe-haven bid

Wed, Nov 12 2008, 16:36 GMT
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NEW YORK, Nov 12 (Reuters) - Stock losses spurring a strong bid for safe-haven government debt sent two-year Treasury yields to a four-year low in late morning trade on Wednesday.

Propelled by the same dynamic, three-month bill rates fell to 4-week lows and the 30-year Treasury bond added to earlier gains, reaching a full point gain.

Two-year notes rose 4/32, their yields briefly dipping to 1.19 percent from 1.27 percent on Monday. The market was closed on Tuesday for the Veterans Day holiday.

Thirty-year bonds rose one full point, their yields easing to 4.15 percent from 4.20 percent on Monday.

Three month bill rates stood at 0.160 percent.

(Editing by Theodore d'Afflisio)

((ellen.freilich@thomsonreuters.com; +1 646 223 6073; Reuters Messaging: ellen.freilich.reuters.com@reuters.net)) Keywords: MARKETS BONDS/2YEAR

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