Worries send US Treasury yields lower

The price of US Treasury bonds was higher on Tuesday on declines in equities markets and continuing concerns about the subprime mortgage sector.

The subprime worries were only magnified by news that Standard & Poor’s is looking at downgrading billions of dollars of mortgage-backed securities, a possibility signaled by an announcement that it had put the securities on its CreditWatch list.

Two-year Treasury bonds were yielding 4.874 percent at mid-afternoon, while yields on ten-year paper had dropped to 5.046 percent and thirty-year issues were at 5.140 percent.

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