Treasuries climbed as investors sought haven while the dollar, stocks and commodities fell as risk appetite faded.
U.S. debt yields fell after rising following an auction of $32 billion of Treasury three-year notes that drew the lowest demand since 2010. They climbed earlier to 14-month highs amid concern the Federal Reserve will slow monetary stimulus. The yen strengthened beyond 100 per dollar after the Bank of Japan refrained from introducing additional stimulus measures.
“We’re seeing the influences of international markets,” said Christopher Sullivan, who oversees $2.1 billion as chief investment officer at United Nations Federal Credit Union in New York. “We have yen strengthening, which has really been the focus of the bond market for some time. Now we have a bit of a rally offsetting the much weaker auction we had.”
The benchmark 10-year yield fell two basis points, or 0.02 percentage point, to 2.19 percent at 2:24 p.m. New York time, according to Bloomberg Bond Trader prices. It increased earlier to 2.29 percent, the highest since April 4, 2012.
Thirty-year bond yields slid four basis points to 3.33 percent after rising earlier to 3.43 percent, also the highest since April 2012.