Treasuries rose for the first time in three days after China weakened its currency, reinforcing speculation the world’s second-largest is economy is slowing and boosting demand for safer assets.

The yuan weakened as the People’s Bank of China lowered its daily reference rate for the currency Tuesday by the most in six weeks. The first indicators for China’s economy this month are signaling its slowdown hasn’t yet bottomed out.

“If there’s something dramatic in the Chinese market, then normally people buy U.S. Treasuries,” said Toshifumi Sugimoto, chief investment officer at Capital Asset Management in Tokyo. “The Chinese economy is not doing well.”

U.S. 10-year note yields fell two basis points to 1.73 percent as of 11:23 a.m. in Tokyo, according to Bloomberg Bond Trader prices. The 1.625 percent security due in February 2026 rose 7/32, or $2.19 per $1,000 face amount, to 99 1/32.

Chinese reports this month show industry gauges of manufacturing and services have fallen to new lows, a reading of business confidence slipped, and interest in small and medium sized businesses is deteriorating.

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