The 10-year Treasury yield fell to a new 2014 low and the lowest level in 10 months, in step with a downshift in global interest rates.
The 10-year is a key rate affecting mortgages and other loans. Traders say one reason for the buying —which pushes rates lower—is that some investors were poorly positioned this year, betting rates would rise. But rates have been falling instead, defying most forecasts and forcing shorts to cover.
"I don't think people who are buying here really want to. They're buying because they're being forced in," said Brian Edmonds, head of interest rate trading at Cantor Fitzgerald. "Look around the world. Everywhere yields are being pushed lower."
The 10-year Treasury yield fell to a low of 2.44 percent, the lowest yield since July on a closing basis. The 30-year has been trading at 11-month lows and touched 3.29 percent Wednesday morning.