Treasurys rise as uncertainty about Italy deepens

NEW YORK (AP) — Prices on Treasury notes and bonds are rising as investors fear that Italy may become the next country to get pulled into Europe's debt crisis.

The yield on the benchmark 10-year Treasury note fell to 1.97 percent as of 2 p.m. Wednesday, down from 2.08 percent late Tuesday. Its price rose $1.03 per $100 invested.

The government also auctioned $24 billion in 10-year notes at a yield of 2.03 percent, well below the 2.27 percent yield at the last auction of 10-year notes on Oct. 12.

Investors bid up safe-harbor assets like Treasurys as investors abandoned Italian government bonds, sending Italy's borrowing costs above 7 percent. Italian Premier Silvio Berlusconi, widely seen as an impediment to reform, has promised to leave but it's not yet clear who would replace him.