10-year yield at 19-month low

NEW YORK (CNNMoney.com) -- Treasury yields continued to fall Tuesday, with the yield on the benchmark 10-year note holding near a 19-month low, as a spate of dour economic news has driven investors into safer assets, like government-backed debt.

The yield on the benchmark 10-year note was 2.49% at 4:30 p.m. in New York. That's down from 2.6% late Monday and is the lowest level since the 10-year yield closed at 2.4% on January 20, 2009, according to data from the Federal Reserve.

The yield on the 2-year note dropped to 0.48%, holding near an all time-low, while the 5-year yield slid to 1.33%. The yield on the 30-year bond was 3.56%, down from 3.66%.

The flight to safety boosted demand for the $37 billion worth of 2-year notes that the government sold Tuesday, with investors submitting bids totaling $115 billion for the notes.

The bid-to-cover ratio, a measure of demand, was a relatively strong 3.12. But the ratio was higher at the last 2-year sale in July, and has averaged 3.17 so far this year.

It was the first of three auctions this week totaling $102 billion in U.S. debt. On Wednesday, the U.S. will offer $36-billion in 5-year notes and will offer $29 billion in 7-year notes on Thursday.

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