Treasurys Climb as Investors Flee Jittery Stock Markets
Investors fleeing jittery stock markets plowed money into the safety of government bonds yesterday, driving the prices of Treasurys higher and their yields lower.</br></br>Stocks dropped late in the day and investors moved to the Treasury market on renewed worries about the disappearance of easy credit and subprime-mortgage woes.</br></br>Many investors and traders are on vacation this week, and others are simply unwilling to trade anything but the safest fixed-income assets.</br></br>"It's actually quite quiet on the trading floor. You're not getting any screaming and yelling. At this point everyone's taking their hands off the wheel and watching the car skid," said T.J. Marta, a fixed- income strategist at RBC Capital Markets in New York.</br></br>Treasury bills and short-term Treasurys saw the heftiest gains as the flight to plain-vanilla investments picked up speed. The three- month Treasury bill yield fell to 4.395% yesterday as its price rose.