U.S. Treasury yields fell on Tuesday as investors bet that low inflation is likely to persist, and that it may make the Federal Reserve less likely to increase interest rates until later this year.
Treasurys have gained since last week's Fed statement, when the U.S. central bank cut its inflation outlook and growth forecast. A majority of Wall Street's top banks now see the Fed holding off at least until September before raising interest rates for the first time since 2006.
Low inflation expectations persisted even after the Labor Department said on Tuesday that its Consumer Price Index increased 0.2 percent last month after falling 0.7 percent in January. That ended three straight months of declines in the index.
Thirty-year bonds outperformed, flattening the U.S. yield curve.
Benchmark 10-year note yields closed at 1.878 percent, the lowest since Feb 5.