NEW YORK (MarketWatch) -- Treasury prices rose Monday on fears that the European debt crisis will spread to Spain and Italy. Yields fell, as investors favored safe-haven assets such as U.S. debt and the dollar DXY +1.14% . Yields on 10-year notes 10_YEAR -2.18% , which move inversely to prices, dropped 7 basis points to 2.96%, the lowest level in more than a month. Yields on 2-year notes 2_YEAR -3.00% fell 2 basis points to 0.38%. "If it was simply an argument about the domestic soft patch we would stick with the bear call, but Europe faces an ever-accelerating threat where the fires spread to each new nation," analysts from RBS Securities said in a note, and added that the crisis risks a flight to quality in Treasurys.
