The yield on the benchmark 10-year Treasury note fell below 2% on Tuesday as investors looked for safety following the release of much weaker-than-expected confidence data.
The yield traded at 1.98% as of 11:02 a.m. ET. The 2-year rate also slid to 1.71% while the 30-year bond yield declined to 2.52%.
The Conference Board’s consumer confidence index fell to 121.5 in June, reaching its lowest level since September 2017. Conference Board senior director Lynn Franco said escalating trade fears appear to have “shaken consumers’ confidence.”
“Those survey readings of higher consumer confidence were just a lot of hot air as it turns out,” said Chris Rupkey, chief financial economist at MUFG, in a note. “If the Fed had had this almost ten point drop in the confidence number last week it may well have tipped the scale and led them to cut interest rates.”
Federal Reserve Chairman Jerome Powell will speak at the Council on Foreign Relations. Powell’s remarks will come after the Fed said last week it will “act as appropriate” to maintain economic growth.
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