Treasury Department

Everybody wants U.S. bonds

This image shows the symbol of the Treasury Department as seen hanging on a wall.
The seal of the U.S. Treasury Department. Photo: Saul Loeb/AFP/Getty Images

The trade war has been a boon for U.S. bonds, which had already seen significant buying for most of 2019.

Driving the news: U.S. Treasury yields fell to a 6-week low on Monday, as investors pushed yields on the benchmark 10-year notes back towards their lows of the year. And data shows investors are snapping up every kind of U.S.-issued bond they can get.

A worrisome trend: Weakest 10-year note auction since 2009

This image is a birds-eye view of the Treasury Building and the street next to it in DC. The Washington monument is seen in the distance.
The Treasury Department. Photo: Chip Somodevilla/Getty Images

Demand for benchmark 10-year notes at Wednesday's U.S. Treasury auction was the worst in a decade, data shows, following Tuesday's sleepy 3-year Treasury note auction that also drew lackluster demand.

Why it matters: The historically weak auctions have come despite falling stock prices and strong buying of safe-haven U.S. debt for much of the year, showing diminishing appetite among some investors.