US Treasury yields mixed as stocks go negative

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U.S. sovereign bond yields were mixed on Tuesday after a raft of data out of China met expectations and U.S. stocks fell slightly as oil prices slid.

Official data showed that China's gross domestic product data came mostly in line with market expectations, though factory output and retail sales dipped slightly below forecasts.

U.S. 10-year yields dropped to 2.027 percent, after closing at 2.04 percent on Friday. Meanwhile, longer dated 30-year bond yields traded around 2.795 percent after finishing at 2.82 percent in the previous session.

The 2-year note yield was about flat at 0.858 percent. U.S. markets were closed on Monday for the Martin Luther King Day holiday.

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US 30-YR

China, the world's second-largest economy, grew by 6.8 percent in the fourth quarter of 2014, slipping by 0.1 percent from the third quarter's 6.9 percent growth. This was in line with the median forecast in a Reuters poll.

Full-year growth came in at 6.9 percent, down from 2014's 7.3 percent, and the slowest pace of economic expansion since 1990.

U.S. stocks fell Tuesday afternoon, with major averages each losing at least 0.4 percent.

Oil prices were mixed, as U.S. crude futures settled more than 3 percent lower, below $29 per barrel. Front-month Brent crude futures were 0.32 percent higher at 28.63 per barrel.

Other data due for release on Tuesday included the NAHB housing index, which showed homebuilder sentiment stalled at 60 this month.