U.S. Treasury yields fell sharply Tuesday, pushing prices higher, as investors sought shelter from the sell-off in stocks.
The yield on the benchmark 10-year Treasury note fell 10 basis points to 2.756% and reached its lowest level since April 27. The yield on the 30-year Treasury bond moved 10 basis points lower to 2.966%. Yields move inversely to prices; 1 basis point is equal to 0.01%.
Traders appeared to pile into bonds after the release of mixed U.S. economic data.
The May reading of the S&P Global U.S. Flash Manufacturing PMI came in at 57.5, just above a Dow Jones estimate of 57.4. The S&P Global U.S. Flash Services PMI, meanwhile, registered at 53.5. That's below a consensus forecast of 55.
"Manufacturers and service providers signaled softer upturns in output amid elevated inflationary pressures, a further deterioration in supplier delivery times and weaker demand growth," S&P Global said in a release.
The moves came as U.S. stocks resumed their sell-off, after a relief rally Monday. The S&P 500 lost 0.8%, and the tech-heavy Nasdaq Composite dropped 2.4%. The Dow Jones Industrial Average also slid on Tuesday but reversed higher into the close and ended up 48.4 points, or 0.2%.
Tuesday's drop in rates pushed the 10-year well off of levels not seen since late 2018. Earlier this month, the benchmark rate traded above 3%, as investors dumped Treasurys amid concerns of rampant inflation and tighter monetary policy from the Federal Reserve.
The Fed has already hiked rates twice this year, and one of those rate increase was of 50 basis points.
Despite the recent reversal, the 10-year is well above where it started 2022 — at roughly 1.51%.