NEW YORK (AP) — Treasury prices moved higher Wednesday as investors sought safety in the wake of a discouraging labor market report.

The rise in prices pushed yields lower, which is good news for consumers. Yields on long-term Treasurys are closely tied to interest rates on mortgages and other consumer loans.

Investors have been worried recently that a sharp jump in interest rates could derail the economy’s recovery.

Rates on 30-year mortgages spiked to as high as 5.6 percent in June, but have fallen slightly since then. The average rate for a 30-year fixed mortgage was 5.32 this week, below last week’s average of 5.42 percent, but still above record lows posted earlier this year, Freddie Mac said Thursday.

Investors fled riskier assets like stocks and commodities and flocked to Treasurys Thursday after the Labor Department said the U.S. unemployment rate rose to a 26-year high of 9.5 percent last month. Investors were also rattled by news that employers cut 467,000 jobs in June, much more than the 363,000 forecast by analysts.

Much of the rally came in short-term Treasury bills as jittery investors looked to park their money while deciding their next steps.

The surge in the credit market reflects the poor state of the economy and not necessarily excitement over Treasurys, said Howard Simons, strategist with Bianco Research in Chicago.

“They’re not rallying because people think this is a great place to put your money,” he said. “They’re rallying because there’s no better place to put your money.”

Next week the bond market will be put to the test during another round of auctions, this time for $65 billion of 3-, 10- and 30-year Treasurys.

Part of the reason yields spiked in June was because investors worried that the huge amounts of debt the government is issuing to fund its economic programs would be met with poor demand. So far though, auctions have been doing relatively well.

In late trading, the benchmark 10-year Treasury note’s yield fell to 3.50 percent from 3.54 percent late Wednesday. Its price rose 12/32 to 96 28/32.

The 30-year bond’s yield slipped to 4.33 percent from 4.34 percent. Its price rose 3/32 to 98 23/32.

The two-year note’s yield fell to 0.99 percent from 1.05 percent, and its price rose about 4/32 to 100 8/32.

The three-month T-bill’s yield was 0.15 percent, down from 0.16 percent late Wednesday. The discount rate was 0.16 percent.

The cost of borrowing between banks fell to a fresh low Thursday.

The British Bankers’ Association said the rate on three-month loans in dollars — known as the London Interbank Offered Rate, or Libor — fell 0.01 of a percentage point to 0.58 percent.