U.S. government debt prices rose, erasing losses, after Bank of England Governor Mark Carney hinted at more stimulus for the United Kingdom after the country's vote on EU membership.
"The economic outlook has deteriorated and some monetary policy easing with likely be required over the summer," Carney said in a speech at the Bank of England in London.
"I want to re-emphasise that the bank has taken all the necessary steps to prepare for these events. And we will not hesitate to take any additional measures required to meet our responsibilities as the United Kingdom moves forward," Carney said.
Benchmark U.S. 10-year Treasury note prices were higher, up about 0.36percent from the previous day for a yield of 1.4774 percent, while the 30-year bond yield was also lower at 2.2912 percent. Two-year yields also fell, last trading at 0.5817 percent.
The negative yield on the German 10-year bund settled at -0.1350, a new record low.