Treasury yields edged lower Wednesday as concerns about the global economy overshadowed an encouraging report on the US housing market.
The yield on the 10-year note slipped to 1.78 percent, down from 1.81 percent late Tuesday. Its price rose 28.1 cents for every $100 invested. Bond yields fall when their prices rise.
The National Association of Realtors said housing sales jumped to the highest level in more than two years in August. But Treasury yields continued to draw back from four-month highs reached last week.
Bond traders are mulling a host of concerns. They're wondering when Spain will make a formal request for help and are already starting to worry about a package of spending cuts and tax increases set to hit the U.S. economy at the start of 2013. If it's not avoided, that "fiscal cliff" could send the economy back into recession.
In other trading Wednesday, the price of the 30-year Treasury bond rose 75 cents for every $100. The higher price knocked its yield down to 2.97 percent from 3.01 percent late Tuesday. The yield on the two-year Treasury note dipped to 0.26 percent from 0.27 percent.
In the market for short-term bills, the three-month T-bill paid a 0.11 percent yield.