NEW YORK: US 30-year Treasuries dropped one point in price on Tuesday, giving back gains from the previous session as US equities closed higher.
The 30-year bond briefly fell a point before trading down 27/32 to yield 2.734 percent.
Investors "over reacted" to Monday data showing a surprise contraction in US manufacturing in June, said Jim Vogel, an interest rate strategist at FTN Financial. Investors ran to perceived safe-havens such as US Treasuries after the data.
"We had a bit of catch-up selling to do as soon as it became clear domestic equities were going to have an up day," he said.
In addition, large, swift gains in oil prices helped ease worries about riskier assets, he said.
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