Interest rates fall after July home sales plummet

NEW YORK (AP) — Interest rates fell again in the Treasury market, sending the yield on the two-year note to another record low, after a sharp drop in sales of existing homes added to worries about the economy.

The yield on the 10-year note continued to hover near levels not seen since March 2009.

The yield on the two-year note fell as low as 0.46 percent early in the day today before climbing back to 0.48 percent. The rate on the note inched higher following an auction for $37 billion in two-year Treasurys.

The highest yield accepted by the government at the auction was 0.498 percent, so two-year notes already trading moved closer to that yield.

The price of the two-year note that matures in July 2012 rose 3.125 cents to $100.269. Bond yields move down when their prices rise.