Treasury yields are flat after record drop in inflation data

U.S. government debt yields held steady on Tuesday as investors digested weak inflation data and tracked measures to reopen the economy.

The yield on the benchmark 10-year Treasury note ticked lower by about 1 basis point to 0.711% and the yield on the 30-year Treasury bond was also slightly lower at 1.417%. Bond yields rise as prices fall.

Market optimism over efforts to reopen the economy was cooled Monday after the Chinese city of Wuhan, the original epicenter of the Covid-19 pandemic, reported its first new cases since lifting lockdown measures.

States across the U.S. and countries around the world have begun easing Covid-19 lockdown measures implemented to contain the coronavirus pandemic, which has ravaged the global economy. Fears the U.S. could see a resurgance in new cases sent investors for the relative safety of U.S. debt.

Data on Tuesday showed consumer prices dropped by the most on record in April as the economy reeled from restrictions imposed to contain the coronavirus.

The Bureau of Labor Statistics said the CPI excluding food and energy prices slumped 0.4%, the biggest monthly decline in data back to 1957.

President Donald Trump also said on Monday that he opposed renegotiating the "Phase One" trade agreement signed between Washington and Beijing in January, after China's state-run newspaper reported discontent among government advisors.

Prior to the coronavirus pandemic, markets had been attuned to protracted trade negotiations between the world's two largest economies.

The U.S. Treasury Department will auction $32 billion of 10-year notes later Tuesday.