NEW YORK: Long-dated US Treasury yields rose on Tuesday as worries eased over global growth, leading traders to sell some safe-haven U.S. government debt, while caution ahead of Friday's U.S. jobs data kept yields in tight ranges.
U.S. shares stabilized on Tuesday after falling on Monday, when weak Chinese economic data fanned fears of a global slowdown. The calming markets stifled demand for long-dated Treasuries.
"If today is not a risk-off day, there's a less compelling reason for people who bought long Treasuries yesterday to hold them," said Jonathan Lewis, chief investment officer at Samson Capital Advisors in New York.
U.S. 30-year Treasuries were last down 12/32 in price to yield 3.008 percent, from a yield of 2.989 percent late Monday. Long-dated yields hit 2.939 percent Monday, their lowest in nearly a week.
Analysts said that trading in the U.S. bond market was subdued because traders were looking ahead to Friday's closely watched December U.S. non-farm payrolls data. Economists polled by Reuters expect U.S. employers to have added 200,000 jobs in December, down from 211,000 jobs in November.
Despite the growing calm in U.S. markets, analysts said yields on medium-dated Treasuries dipped on expectations that the Federal Reserve may have to slow the pace of its rate hikes this year given weakness in global markets and continued concerns about economic growth.
"People are extrapolating into the second hike, and if you get continued weakness globally... I think that is postponing people's expectation of the next hike," said Priya Misra, head of global rates strategy at TD Securities in New York.
U.S. five-year Treasury notes were last up 2/32 in price to yield 1.722 percent, from a yield of 1.737 percent late Monday. U.S. seven-year notes were last up 2/32 in price to yield 2.056 percent, from a yield of 2.067 percent late Monday.
Those yields remained above nearly two-week lows hit Monday.
Benchmark 10-year U.S. Treasury notes were last mostly flat in price to yield 2.246 percent, from a yield of 2.245 percent late Monday. Benchmark yields hit a nearly two-week low of 2.200 percent on Monday.
On Wall Street, the benchmark S&P 500 stock index was last up 0.23 percent after falling 1.5 percent on Monday.
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