Treasury yields fell on Tuesday as a return of volatility in equity markets spurred a shift toward the relative refuge of government debt.
The U.S. bond market, which was closed Monday due to the Veterans Day holiday, had its first chance to react to the prior session's 600-point drop in the Dow Jones Industrial Average and a broad sell-off in technology stocks.
The yield on the benchmark 10-year Treasury note fell to around 3.143 percent, while the yield on the 30-year Treasury bond dropped to 3.363 percent. The 2-year note yield fell about 3 basis points to 2.895 percent. Bond yields move inversely to prices.
Investor sentiment has been shaken in recent weeks on fears that the Federal Reserve may be tightening monetary policy too quickly. The U.S. central bank is expected to hike interest rates in December as well as multiple times in 2019.
Fed officials, who attempt to keep unemployment low and inflation moderate, have gradually increased interest rates under Fed Chair Jerome Powell as they try to prevent the U.S. economy from overheating. But with the gradual increases to the federal funds rate, some investors have grown anxious that the central bank could tighten financial conditions too much and cause a destructive contraction in corporate profits.