Treasurys Rise As Investors Eye Safety Of Bonds

STEPHEN BERNARD

NEW YORK (AP) — Treasury prices rose Monday as investors sold off stocks and sought the safety of government debt amid concerns about the timing of an economic recovery.

"With pressure from the equity market, you get a presumed flight to quality," said John Lekas, owner of Leader Capital Corp. in Portland, Ore. Lekas said Treasury prices are likely to continue to rise over the next two months as stocks fall and investors clamor for safer investments.

In late trading, the 10-year note rose 13/32 to 101 27/32 and its yield fell to 3.40 percent from 3.45 percent late Friday.

Renewed questions about a potential economic recovery had investors selling off riskier stocks and buying Treasurys. The Dow Jones industrial average fell 48 points as U.S. markets followed Chinese and other overseas stocks lower.

Stocks had been soaring during a six-month rally amid signs that economic turmoil was lessening. Now, however, investors are looking for signs of actual economic growth and not just slowing declines to support rising stock prices. If none can be found, analysts say a sell-off could occur. That would likely help support bond prices and push yields lower.