Treasury Bonds Surge As Yields Fall

U.S. Treasury bonds prices surged during trading today causing 10 year yields to fall to their lowest point since July, as problems in Greece increased after the government approved several austerity measures in exchange for financial aid from Germany, IMF and the rest of European Union.

Yields on the ten year bond, fell nearly 16 basis points to rest at 3.8%. The iShares Barclays 7-10 Year Treasury bond ETF (NYSE: IEF) rose nearly 1.10% as investors sought shelter from the storm. The euro (NYSE: FXE) plunged to its lowest levels since March of 2009 and S&P 500 (NYSE: SPY) fell around 3.5% in a wild day of trading. Gold prices also surged, nearing its record highs, settling at $1211.90. The popular SPDR Gold Shares ETF (NYSE: GLD) rose 3% in normal trading as uncertain investors continued to plow into the safety hedge.