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The US Commerce Department said on Tuesday the trade gap fell 22.4 percent to $34.2 billion, the smallest since October 2009. The percentage decline was the largest since February 2009. Economists polled by Reuters had forecast the June deficit likely narrowed to $43.5 billion.
Last week, the government said second-quarter gross domestic product grew at a modest 1.7 percent annualized pace.
In the bond market, benchmark 10-year Treasury notes last traded 2/32 lower in price to yield 2.650 percent, up 1 basis point from late on Monday.