U.S. government debt prices rose, sending yields lower, on Thursday after President Donald Trump announced that he cancelled the hotly anticipated summit with North Korea's Kim Jong Un.
Yields also fell after minutes from the Federal Reserve's May meeting minutes revealed that central bankers would be comfortable allowing inflation to temporarily run above its 2 percent target.
The yield on the two-year note hit a fresh low of 2.496 percent, its lowest level since May 7, when the two-year note yielded as low as 2.493 percent.
The meeting between the Trump and Kim would have been the first face-to-face encounter between a sitting U.S. president and a North Korean leader.
"Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have this long-planned meeting," Trump wrote in the letter, which was released Thursday morning.
Stocks sold off swiftly following the announcement from the White House as investors pivoted to seemingly safer assets like bonds. The increase in debt prices was also spurred by Wednesday's news from the Federal Reserve.