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Data: U.S. Department of the Treasury, Investing.com; Chart: Andrew Witherspoon/Axios

Even as foreign governments like China have reduced their holdings of U.S. Treasuries recently, appetite has continued to push prices up and yields down, with the benchmark 10-year note yielding its lowest since 2017.

The big picture: One major theme boosting U.S. bond buying has been that Treasuries hold significantly higher yields than comparable government bonds from developed market peers like Canada, Japan and the eurozone. While the U.S. remains the best house in a bad neighborhood, that yield premium is compressing.

What's happening: The differential between U.S. and German yields reached its highest level in modern history in November, but has fallen precipitously since then, notes Bannockburn Global Forex chief market strategist Marc Chandler. Against other countries, yield differentials that were extraordinary have been whittled down from all-time or decade-long highs to cycle lows.

  • U.S. 2-year yields were 85 basis points above Canadian yields in February, the most since the financial crisis, but have fallen to 45 basis points.
  • The 2-year was more than 100 basis points higher than comparable Australian yields just 2 weeks ago and is now just 75 basis points higher.

Why it matters: Market strategists are betting the bond market has further room to run, with rates continuing to fall, but if the U.S. yield premium vanishes, foreign buyers could do so as well.

  • That may also be bad news for the U.S. dollar, as lower bond yields make currencies less attractive to foreign buyers, but could be good news for U.S. multi-national firms who have been struggling with the dollar's prolonged strength. 

Go deeper: Bond yields are at historic lows around the world

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Updated 14 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 7 a.m. ET: 11,288,094 — Total deaths: 531,244 — Total recoveries — 6,075,489Map.
  2. U.S.: Total confirmed cases as of 7 a.m. ET: 2,839,917 — Total deaths: 129,676 — Total recoveries: 894,325 — Total tested: 34,858,427Map.
  3. States: Photos of America's pandemic July 4 ICU beds in Arizona hot spot near capacity.
  4. Public health: U.S. coronavirus infections hit record highs for 3 straight days.
  5. Politics: Trump extends PPP application deadlineKimberly Guilfoyle tests positive.
  6. World: Mexican leaders call for tighter border control as infections rise in U.S.
  7. Sports: 31 MLB players test positive as workouts resume.
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.

Protester dies after car drives through closed highway in Seattle

Protesters gather on Interstate 5 on June 23, 2020 in Seattle, Washington. Photo: David Ryder/Getty Images

One person is dead and another is in serious condition after a car drove onto a closed freeway in Seattle early Saturday and into protesters against police brutality, AP reports.

  • "Summer Taylor, 24, of Seattle died in the evening at Harborview Medical Center, spokesperson Susan Gregg said."

Where it stands: The suspect, Dawit Kelete of Seattle, fled the scene after hitting the protesters, and was later put in custody after another protester chased him for about a mile. He was charged with two counts of vehicular assault. Officials told the AP they did not know whether it was a targeted attack, but the driver was not impaired.

Trump's failing culture wars

Data: Google; Chart: Naema Ahmed/Axios

President Trump built his political brand by stoking the nation's culture wars, but search data is showing us how much harder it's been for him to replicate that success while running against another white man in his 70s — and while there's a coronavirus pandemic.

The big picture: Google Trends data shows Trump's "Sleepy Joe" name-calling isn't generating nearly the buzz "Crooked Hillary" (or "Little Marco") did in 2016. Base voters who relished doubting President Obama's birth certificate aren't questioning Biden's.