Treasury Yields Down With Growth Worry Spurring Short Squeeze
- U.S. 30-year yield breached 2%; 10-year dipped below 1.35%
- Supply-demand supports with only bills on auction this week
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Treasury yields have dropped to a four-month low as a gauge of U.S. service-sector activity faltered, with short covering exacerbating the move.
The benchmark 10-year yield fell as much as eight basis points on Tuesday to print under 1.35%, the lowest level since Feb. 24. The 30-year yield dropped to 1.971%, testing its 200-day moving average. Session lows were seen after the ISM Services Index for June fell more than expected from May’s record high.