(Recasts with price change, adds quote)
* Stock decline increases demand for bonds
* U.S. 10-year yields lowest since March 1
By Karen Brettell
NEW YORK, March 21 U.S. Treasury yields fell to
three-week lows on Tuesday as stock markets tumbled, raising
demand for low-risk U.S. government debt.
Stocks dropped with the S&P 500 financial sector losing 1.7
percent, on track for its largest daily percent loss since Jan.
“Stocks are down, and bonds are reacting to that,” said Lou
Brien, a market strategist at DRW Trading in Chicago.
The U.S. dollar also tumbled against the euro and
Japanese yen .
Benchmark 10-year U.S. Treasuries were last up
10/32 in price to yield 2.44 percent, the lowest yield since
March 1 and down from 2.50 percent earlier on Tuesday.
(Reporting by Karen Brettell; Editing by Andrea Ricci)