US treasury yields hit fresh lows
$81b in notes and bonds likely to be sold this week
New York : Treasuries gained, driving 10-year yields down for a fifth straight week, as concern some Eur-opean nations might default on their debt drove investors to the safety of US securities.
Yields on notes dropped to the lowest levels in at least six weeks as sovereign risk crises in nations such as Greece, Portugal and Spain dulled investors' appetite for higher- yielding assets.
The US economy unexpectedly lost 20,000 jobs last month, a report showed, and the Treasury prepared to sell a record-tying $81 billion in notes and bonds this week.
"Sovereign risk has taken centre stage and the beat of the drum is starting to get louder and louder," said Larry Milstein, managing director in New York of government and agency debt trading at RW Pressprich & Co. "The safe-haven bid has come back into play, and investors are looking for safety."
The yield on the two-year note dropped five basis points, or 0.05 percentage point, to 0.76 per cent, from 0.81 per cent on January 29.
