Government bond prices rose Tuesday after a surprise drop in consumer confidence added to a growing pile of evidence that the U.S. economic recovery may be losing steam.
The price of the 10-year Treasury note rose 9.4 cents per $100 invested Tuesday. Its yield fell to 3.06 percent from 3.08 percent late Friday. Earlier the yield fell to 3.05 percent, the lowest level for the benchmark interest rate this year.
Earlier in the day, the Conference Board released results of its monthly survey which found that Americans are losing faith that the economy is improving. That added to worries about weak consumer spending, which held back economic growth to just 1.8 percent in the first three months of the year.
A spike in oil prices and other troubling signs on the economy have sent Treasury prices steadily higher since mid-April.
In other trading, the price of the 30-year Treasury bond rose 34.4 cents per $100 invested, while its yield fell to 4.23 percent from 4.25 percent late Friday. The yield on the two-year note slipped to 0.47 percent from 0.48 percent.
The yield on the three-month T-bill rose to 0.05 percent from 0.03 percent. The discount was 0.05 percent.