U.S. Yields Pare Losses as Stocks Recover from Selloff

Treasury yields reversed some of their losses but still closed lower after stocks rallied from the prior day's rout that drove investors toward safe havens and pushed bond prices up.

The yield on the 10-year Treasury notes edged down 2.8 basis points to 2.766 percent, after having declined to as low as 2.648 percent. The benchmark yield had climbed to a four-year peak of 2.883 percent on Monday. Two-year note yield was mostly unchanged at 2.091 percent, while the 30-year rate was down 2.3 basis points to 3.043 percent.

Yields on the 10-year German bund shed 4.6 basis points to 0.691 percent, according to Factset data.

Appetite for safe-haven bonds eased after stocks jumped a day after a historic selloff in the U.S. equities markets when the Dow Jones Industrial Average observed its biggest one-day decline in history. Investors tend to shift towards bonds and other safe-haven assets whenever there is chaos in riskier assets, such as stocks.

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