In early European trade, yields across the US government bond curve were down four to six basis points.

The US 10-year Treasury yield hit a 20-month low at 2.17pc , while two-year Treasury yields fell to their lowest since February 2018 at 2.007pc.

The yield curve, as measured in the gap between three-month and 10-year bond yields, remained heavily inverted in a sign of investor concern about recession risks.

The outlook darkened further when a key measure of Chinese manufacturing activity disappointed for May, while Federal Reserve Board of Governors Vice Chair Richard Clarida said on Thursday the Fed would act if inflation stays too low or global and financial risks endanger the economic outlook.