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US 10-year yield hits 1-month low amid weak sentiment

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Yield
 
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%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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U.S. sovereign bond prices rose on Tuesday as stocks fell and oil prices wavered.

The yield (which moves inversely to the price) on the benchmark 10-year Treasury note fell to 1.723 percent, after hitting its lowest levels since March 1. The yield on the 30-year Treasury bond was also lower, at 2.544 percent, after hitting a six-week low.

Two-year yields dipped to 0.72 percent.

U.S. oil prices settled 0.5 percent higher after shedding 3 percent on Monday.

Commodity prices have led to volatility in equity markets in recent months and any "risk-on" move tends to favor so-called safe haven assets like fixed income. Oil came under renewed pressure on Tuesday morning with Reuters citing weakening demand for gasoline and concerns of a global crude glut for the slump.

Traders were also reacting to comments from Kuwait's OPEC governor Nawal Al-Fuzaia who spoke of the prospect of a freeze in output for the oil cartel.

Back in the U.S, investors will be monitoring a slew of data. Trade deficit for February came in at $47.1 billion. Also, Markit services PMI came in at 51.3 for March while the ISM non-manufacturing index for March came in at 54.5, above the expected 54.

The Job Openings and Labor Turnover Summary report showed job openings were little changed at 5.4 million in February.

On Monday, Federal Open Market Committee voting member Boston Fed President Eric Rosengren said he believed it would likely be appropriate to resume the path of gradual tightening sooner than was implied by financial market futures. He added the "U.S. has weathered foreign shocks quite well" and that risks from abroad are easing.

There was more Fed talk on Tuesday with Chicago Fed President Charles Evans speaking in Hong Kong. He said the U.S. central bank had to be proactive and aggressive to get up to the Federal Reserve's inflation targets, according to Reuters.