Interest rates drop after traders move into safety of bonds after China boosts bank reserves

Interest rates fall as investors seek safety

CHARLOTTE, N.C. — Interest rates are falling in the bond market as investors moved out of stocks and into safe government-backed bonds.

Corporations continued to report strong first-quarter earnings Wednesday. Analysts caution, however, that investors are starting to become accustomed to better earnings and even good news on profits may not be enough to push stocks higher.

That led investors to shift money out of stocks and back into safe assets like Treasurys, pushing bond prices slightly higher and their yields lower.

The yield on the benchmark 10-year Treasury note maturing in February 2020 fell to 3.75 percent in afternoon trading from 3.80 percent late Tuesday. The yield on the 10-year note is linked to rates on mortgages and other consumer loans.