WASHINGTON — US Treasury bond yields plunged Thursday, with the 10-year yield hitting a record low as worries about a new recession in the United States and Europe battered stock markets.
The 10-year Treasury yield fell to 1.974 percent, lower than the previous record during the US "Great Recession," before recovering slightly to 2.007 percent, while the 30-year hit 3.337 percent before rebounding to 3.371.
US bond yields have been falling since the beginning of the month and have sharpened their drop, paradoxically, since Standard & Poor's lowered the country's credit rating a notch from AAA on August 5.
Much of the fall is blamed on buying from investors fleeing plunging stock markets and other more risky assets for Treasuries.
"We're still a safe heaven for international flows with the turmoil that is still going on abroad," said Lindsey Piegza of investment bank FTN.
"While the US is in a questionable shape, we are certainly in a better shape than our European counterparts, that we are seeing this flight to safety going on."
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