NEW YORK: US Treasury debt prices rose on Monday, after two days of losses, as a failed coup attempt in Turkey over the weekend heightened concerns about global geopolitical risk, prompting investors to seek the safety of government bonds.
Turkey's coup attempt followed killings in Nice, France last week, several recent police-related incidents in the United States, as well as Britain's shock vote to exit the European Union a few weeks ago.
Jonathan Rick, interest rates derivative strategist at Credit Agricole, said trading in US Treasuries is all about geopolitical risk at the moment.
Bond yields, which move inversely to prices, were little changed to slightly higher on the day, in a month where US 10-year yields have fallen by as much 16 basis points.
US two-year yields, the maturity most sensitive to interest rate expectations, have fallen as much as 12 basis points in the immediate aftermath of Britain voting the leave the EU.
In mid-morning trading, benchmark 10-year notes rose 6/32 in price to yield 1.571 percent, up from 1.548 percent on Friday.
US 30-year bond prices were higher as well, up 12/32 in price, yielding 2.287 percent from 2.257 percent late Friday.
Long-dated Treasuries are seeing robust demand from investors searching for higher returns with negative bond yields being offered in powerhouses like Japan and Germany.
US two-year notes edged higher in price at 1/32, yielding 0.685 percent, from 0.682 percent on Friday.
Monday's data showed a US homebuilder sentiment index fell one point to 59 in July. The numbers were in line with expectations.
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