The collapsing oil market spurred a fresh wave of safe-haven bids for U.S. government debt on Tuesday, sending the 30-year yield to its lowest in more two years as investors worried about how the plunge in crude prices might harm the global economy.
Trading across financial markets was volatile as investors grappled with the longer-term implications of the steep slide in oil prices on the economy and U.S. Federal Reserve policy.
With U.S. oil futures falling below $54 a barrel to 5-1/2 year lows, traders have been speculating whether the drop will force the Fed to postpone a possible interest rate increase in 2015 despite encouraging domestic jobs and manufacturing data.
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