LONDON: US 10-year T-note yields retreated from 2013 lows in Europe on Tuesday as investors cut back on the positions taken in an initial reaction to the explosions at the Boston Marathon.
Two bombs exploded at the race's finish line, killing three people and injuring more than 100, in an attack which a White House official said would be treated as an "act of terror."
Uncertain of the magnitude of the event, investors rushed in to buy Treasuries immediately after the news as they perceive US bonds as among the safest assets in the world.
Benchmark 10-year T-note yields hit a 2013 low of 1.676 percent on Monday, also pushed lower by poor manufacturing data in the United States and weaker-than-expected growth in China.
On Tuesday, 10-year yields were 2.4 basis points higher at 1.7122 percent, while T-note futures were 5/64 higher at 132-31/32.
"We saw an immediate flight to quality after the Boston explosions but that proved temporary as the market has taken the view that it was a localised event and it's not caught the US economy off guard," RIA Capital Markets bonds strategist Nick Stamenkovic said.
"For yields to drop further we need evidence that the US economy is going through a distinct soft patch," he said, adding that he saw 10-year yields trading in a 1.65-1.85 percent range after the data.
The US will release inflation, housing and industry data later in the day.
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