A flight-to-safety move triggered by renewed contagion fears about banks sent Treasury yields plunging on Wednesday. The benchmark 10-year Treasury yield fell 20 basis points to 3.433% and was on the way to its biggest one-day decline since Nov. 10. Meanwhile, the policy-sensitive 2-year rate dropped 39 basis points, to 3.817%. The size of the 2-year’s move was less pronounced than the one seen on Monday, when it fell by 55.5 basis points by the end of New York trading and produced the biggest one-day decline since Oct. 20, 1987.
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