LONDON Feb 21 U.S. 10-year T-note yields fell
below 2 percent on Thursday after weaker-than-expected euro zone
private activity data prompted investors to buy assets perceived
as safe havens.
Prospects that the debt-laden region might soon emerge from
recession were shaken as surveys showed business indicators
unexpectedly worsened this month, especially in France.
Ten-year T-note yields fell 2.4 basis points to
1.9861 percent, while T-note futures were 9/32 higher at
"We have risk-off again in the market. If you look in Europe
market sentiment is rather poor at the moment due to the poor
data," Rabobank strategist Philip Marey said.
"If you look at the 2 percent level, I don't think we get a
sharp upward move in the near term."
U.S. bonds weakened briefly on Wednesday as the latest
minutes from the Federal Open Market Committee showed
policymakers discussed slowing or stopping Federal Reserve bond
purchases aimed at reducing unemployment.
They later rebounded as a sharp fall in stock prices
rekindled some safe-haven bids for bonds.
Markets will receive a flurry of data later on Thursday
including the consumer price index, weekly jobless claims and
existing home sales.
There will also be an auction of 30-year Treasury Inflation
Protected Securities later on Thursday.