The long-term rate-indicative 10-year Treasury yield dropped below 3.80% Wednesday morning for the first time since 2004 in a move that appears to be driven by negative stock market news and mounting concerns about the effects of the mortgage-related slowdown on the larger economy. The benchmark yield had been trading in a higher range closer to 4.0%, but generally has been trending downward since an unexpectedly weak employment report came out Jan. 4, according to Yahoo Finance. Among the developments driving the 10-year yield lower Tuesday afternoon and Wednesday morning have been "worries about additional subprime-related losses" and pressure on insurers due to mortgage-related asset-backed securities exposure, said David Ader, an RBS Greenwich Capital government bond strategist, in a Wednesday morning report.

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