US Treasury yields slipped on Tuesday, with benchmark yields receding from one-week highs as a result of buying from bargain-minded investors and safe-haven demand on renewed worries about Brexit.
A US government report showing a decline in domestic durable goods orders in February supported the view that the US economy was losing momentum in the first quarter, spurring bids for government securities.
"The strength behind the Treasury market right now is evident when we reach certain support levels, like 2.50% on the 10-year note," said Kevin Giddis, head of fixed income capital markets at Raymond James in Memphis, Tennessee.
Treasury yields retreated after posting their biggest single-day jump in three months on Monday, prompted by upbeat factory data in China and the United States.
The reports from the world's two biggest economies ignited a rally in stock prices around the world and reduced the appeal of low-yielding bonds.
"Yesterday was about better-than-expected numbers, today is about weaker-than-expected numbers with a technical twist," Giddis said.
The yields on benchmark 10-year Treasury notes were 2.4813%, down 1.6 basis points on the day. On Monday, it reached 2.5080%, the highest since March 22.
Last Thursday, 10-year yields hit a 15-month low of 2.340%.
The US Commerce Department said on Tuesday that total orders for durable goods tumbled 1.6% in February, led by a 4.8% drop in demand for transportation equipment. They edged up 0.1% in January.
Jitters about the world economy were also stoked by the lack of a breakthrough in negotiations for Britain to leave the European Union, analysts said.
Comments
Comments are closed.