Data: Investing.com; Chart: Axios Visuals

Bond investors have been snapping up U.S. government debt in recent weeks, pushing yields back toward record lows.

Driving the news: Tuesday's auction of 7-year Treasury notes continued a trend of increased bids and lower yields.

  • It followed an auction of $48 billion of 2-year notes at a high yield of 0.155%, and $49 billion of 5-year notes at a high yield of 0.288%.
  • These auctions represent both the lowest yields ever for each maturity and the largest amounts ever, according to data from BMO Capital Markets rates strategist Ben Jeffery.

Why it matters: Despite the increasing size of the Treasury issuance to deal with the growing U.S. budget deficit, investor appetite has increased, suggesting strong investors demand for safe-haven assets.

Yes, but: Declining yields may also be helping drive down the value of the dollar, which is on pace for its worst monthly performance in a decade.

Go deeper

The dollar's global dominance is being challenged

The dollar index fell to its weakest level since June 2018 on Monday, accelerating a slide that has put it on pace for its worst month in nearly a decade. The greenback's value against global currencies has declined by 6.4% over the last three months.

What's happening: The dollar's weakness is a reflection of the market's disillusionment with the U.S., investors say, as the Trump administration's response to the coronavirus pandemic has left much to be desired.

A quandary for state unemployment agencies

Illustration: Aïda Amer/Axios

State agencies charged with paying unemployment benefits to jobless residents have their backs against the wall as they rush to parse President Trump's executive actions on coronavirus aid.

Why it matters: States are being asked to pitch in $100 per unemployed resident, but it’s a heavy lift for cash-strapped states that are still unclear about the details and may not opt-in at all. It leaves the states and jobless residents in a state of limbo.

Updated 16 mins ago - Health

New Zealand reports first local coronavirus cases for 102 days

Prime Minister Jacinda Ardern after a press conference at Parliament on July 22 in Wellington, New Zealand. Photo: Hagen Hopkins/Getty Images

AUCKLAND, New Zealand — Auckland is locking down and the rest of New Zealand faces lesser restrictions for 72 hours after a family of four tested positive for COVID-19, Prime Minister Jacinda Ardern announced Tuesday.

Why it matters: It's the first cases not in managed isolation for 102 days, Ardern said at a news briefing.