The moves in the bond market come as U.S. stock markets rebounded Tuesday, led higher by gains in technology stocks. Tech, however, has been the culprit in several large equity sell-offs in the past several weeks, with declines in several large-cap names sending the S&P 500 back into correction territory.
Those fears, coupled with persistent trade dispute anxiety, gave bond markets a safe haven bid, explained Kathy Jones, chief fixed income strategist for the Schwab Center for Financial Research.
"Assuming that this trade dispute ends up where most do — they start with a lot of headlines and end up being less in terms of having an impact — the economy should continue to do well," Jones said. "Inflation indicators are still pointing higher and the Fed will likely still be raising rates."
Over the weekend President Donald Trump tweeted that e-commerce giant Amazon was scamming the U.S. Postal Service, and that the service was losing "billions of dollars" because it delivered packages for the group.
Consequently, shares of Amazon sank more than 5 percent Monday, while other technology stocks also posted sharp declines.
Meanwhile, China recently announced that it would be implementing new tariffs on 128 U.S. products, including fruit and meat, in response to the U.S.' own set of levies on steel and aluminum. Consequently, markets in Asia and Europe came under pressure Tuesday.