NEW YORK: US Treasury yields pared their losses on Tuesday after the release of a stronger-than-expected US retail sales report that suggested economic growth was picking up despite the recent a slowdown in job creation.
Data on Tuesday also showed the largest increase in four years in US import prices. The import prices and retail sales data showed the US economy may be regaining its footing and reduced demand for safe-haven government bonds.
Global bond yields continued to fall, though, as fears grew in early trading about Britain exiting the European Union and sovereign debt yields in developed markets hit all-time lows.
German 10-year government bond yields fell below zero for the first time overnight, touching an all-time low of -0.05 percent.
British government 10-year yields touched their lowest levels on record, falling to 1.131 percent.
Japanese 10-year yield also hit its record low, with yields falling to -0.168 percent.
The yield curve flattened with the spread between the two- and 10-year Treasuries yields contracting to its lowest level since November 2007.
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