The dollar rose against all of its major counterparts after the Federal Reserve’s plan to shift holdings of Treasuries to keep the economy from falling into recession increased the refuge appeal of the currency.
The Treasury 10-year yield fell to the lowest level in four weeks as concern Greece will need to tap emergency loans to avoid default pushed down stocks and boosted demand for the relative safety of U.S. government debt.
Treasuries fell, pushing 30-year bond yields to a four-week high, as a U.S. sale of $13 billion of the securities drew lower-than-average demand amid bets the Federal Reserve may buy shorter-term notes to spur the economy.
Treasuries rose, pushing the two-year note yield to a record low, as signs of stalled economic growth in the U.S. and a widening sovereign debt crisis in Europe boosted demand for the perceived safety of U.S. debt. Standard & Poor's cut the nation's AAA rating to AA+ after markets closed yesterday.
Investors outside the U.S. have boosted their holdings of longer-maturity Treasuries to the highest level since the credit markets froze in 2008, helping curb rising yields amid concern inflation is accelerating.