US 10-year Treasury yield closes at record low of 1.375 pct

US 10-year Treasury yield slides to record low

U.S. sovereign bond prices were higher Tuesday, after being closed Monday for the July 4 holiday, resuming a strong "safe-haven" bid as global equities fell lower.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, closed at a record low of 1.3759 percent, while the yield on the 30-year Treasury bond was down at 2.1552 percent, also close to a record low. Meanwhile, the yield on Switzerland's 50-year government bond fell below zero for the first time on Tuesday, according to Reuters.

Uncertainty surrounding global growth and the U.K.'s referendum vote resumed among investors Tuesday after a strong rally in equities last week. The U.K.'s ruling Conservative party will hold the first stage of its selection process for a new leader on Tuesday evening and potential candidates have been busy putting their ideas forward for the post-Brexit environment.

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Sterling has also fallen to a 2-1/2 year low against the euro and redemptions in one U.K. property fund have been halted after a string of outflows. The pound also fell to a fresh 31-year-low against the dollar early Tuesday.

"Markets are settling uncomfortably into a post-Brexit dystopia. Rumors abound of crashing business expectations and culls of bankers. But, unlike the continuing hurly-burly of the political world, here on the trading floor we've pretty much gone through all the 8 stages of Brexit: Shock, denial, anger, bargaining, depression, applying for an Irish passport, acceptance.. and finally hope that it might not matter anyway," Bill Blain, a senior fixed income broker at Mint Partners, said in a morning note.

In the U.S., May factory orders fell 1 percent after two straight months of gains.

New York Fed President William Dudley said the central bank can be patient in normalizing rates, given the low inflation in the U.S., among other factors.