Slide in pending home sales sends bond yields down

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NEW YORK (AP) — Interest rates are falling on the bond market as investors snap up government debt following a drop in the number of home sales.

The drop in existing home sales for November caused concerns that the economy could give up some of the improvements it has been making.

A cautious tone in the stock market Tuesday also stoked demand for the safety of Treasurys. Bond yields were falling as their prices rose.

The yield on the 10-year Treasury note, which is tied to interest rates on mortgages and other consumer loans, fell to 3.77 percent from 3.83 percent late Monday. Its price rose 13/32 to 96 25/32.

The yield of the 30-year bond fell to 4.61 percent from 4.65 percent.