"Yields are pretty low and there's probably a fair bit of safe haven-type flow into them"
- RBC Capital Markets Ltd.
U.S. ten-year Treasuries advanced, pushing yields to historic lows, as fears about Spain's ability to avert a sovereign bailout spark investors' demand for safe-haven fixed income assets. Ten-year yields touched 1.4347 percent, while the five-year yield fell to historic low of 0.5555 percent.
"It is easy to understand that the European situation is not good, which is driving yields down. From now, a lot of the market's direction will also depend on U.S. data," said Tomoaki Shishido, Fixed Income analyst at Nomura Securities.
"Soft data in the U.S. is pretty consistent with what's been happening across the globe," said Michael Turner, Economist at RBC Capital Markets Ltd. in Sydney. "Yields are pretty low and there's probably a fair bit of safe haven-type flow into them."
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