US Treasury yields drop as growth slows in China and Europe

FXStreet (Mumbai) - The Treasury prices in the US snapped three day losing streak, thereby pushing the yields higher after the data in China, Eurozone and UK showed a slowdown in the economic activity.

Currently, the 10-year yield trades 1.6 basis points lower at 1.956%, while the 30-year yield fell 1.9 basis points to 2.635%. Meanwhile, the 2-year yield is relatively resilient at 0.545%. Moreover, the long-end of the curve is more sensitive to the global growth slowdown as the 10-year notes is usually the recipient of the safe haven demand.

The yields dropped after Chinese manufacturing gauge fell to a 12-month low in April, while a similar gauge showed activities in Germany and France were slow. Meanwhile, UK retail sales growth slowed in March.

Ahead in the data, the treasuries could be influenced by the jobless claims data which will provide insight into the labor market strength in the US.