NEW YORK: US Treasuries prices fell on Tuesday as a bounce in global stock markets on less pessimistic data on Chinese economic growth reduced safehaven bids for low-risk government debt.
The initial rise in U.S. oil futures also pared demand for Treasuries, sending benchmark yields above the three-month lows set on Friday.
"The data from China were not as bad as some people had feared. That gave solace to some investors to think the stock market may have reached a bottom," said Larry Milstein, head of government and agency trading at R.W. Pressprich & Co. in New York.
Official data released on Tuesday showed China grew 6.9 percent in 2015, which was its weakest rate in a quarter of a century. The growth pace on the world's second biggest economy, however, was not as dismal as some had expected and that was enough to pause the dramatic sell-off in stock and commodities markets worldwide since the beginning of 2016.
Benchmark 10-year Treasuries notes were down 7/32 in price for a yield of 2.057 percent, up 2 basis points from late on Friday. The 10-year yield fell to 1.986 percent on Friday, which was its lowest intraday level since Oct. 14, according to Reuters data.
U.S. financial markets were closed on Monday for the Martin Luther King holiday.
Major U.S. stock indexes were up at least 0.8 percent in early trading.
U.S. oil futures climbed above $30 a barrel before retreating to $29.14, down 0.9 percent on the day.
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