WASHINGTON –- For the first time in nearly eight months U.S. Treasuries rose, briefly pushing yields on two-year notes below those of 10-year notes as investors looked for refuge from falling equity markets around the world.

The shrinking gap between two-year and 10-year notes reflects growing expectations the Federal Reserve will lower interest rates this year, offered one news source.

The yield on the two-year note dropped almost 2 basis points to 4.51 percent; the yield on the 10-year note declined 1 basis point to 4.49 percent.

On Nov. 27, the yield curve had inverted to as much as 19 basis points.

A week ago, before the market took a downturn on Feb. 27 and investors began pouring money into the Treasury market, the yield of the two-year note was almost 0.14 percent point higher than that of the 10-year note.

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Editor's note:
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