Interest rates pull back a day after 10-year note yield hits highest level since 2008

Rates slip a day after bond yields hit 2010 highs

NEW YORK — Interest rates are falling in the bond market, a day after yields reached their highest levels since October 2008.

The yield on the 10-year Treasury note fell to 3.95 percent in Tuesday morning trading, a day after briefly climbing above 4 percent for the first time since June. The yield is now nearly as high as it was just before the credit crisis erupted late in late 2008.

The drop in yields and rise in Treasury prices comes as investors prepare for an auction of three-year notes later Tuesday.