NEW YORK (AP) — Interest rates are tumbling in the bond market after a sharp drop in sales of existing homes added to worries about the pace of the economic recovery.
The yield on the two-year Treasury note touched another record low Tuesday, and the yield on the 10-year note continues to hover near levels not seen since March 2009.
The National Association of Realtors says sales of previously occupied homes plunged 27 percent in July to an annual rate of 3.83 million, far worse than analysts expected.
Investors spooked about the potential of the economy falling back into recession have been pouring money into bonds. That has driven the prices of Treasurys higher and their yields lower.
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