US government debt, also known as Treasuries, rose on Tuesday as investors digested new economic data and ongoing geopolitical tensions.
The yield on the ten year benchmark moved lower as price moved higher. The last yield quote was at 2.174 percent. The thirty year yield was also lower at 2.836 percent
As far as economic news is concerned, housing starts fell 6.8 percent last month. This was well above the expected 3.9 percent decline. Industrial production rose 0.5 percent last month. This was in line with expectations.
Treasuries Look at Geopolitical Tensions
In global news, geopolitical tensions continue to dominate the Treasuries. Vice President Mike Pence reassured Japan of American commitment to reining in North Korea’s nuclear and missile ambitions on Tuesday, after warning that U.S. strikes in Syria and Afghanistan showed the strength of its resolve.
Vice President Pence is now in Tokyo, Japan. He is reassuring regional leaders of the “iron-clad” alliance with the United States in the face of ongoing threats from North Korea. The reclusive hermit state has conducted a series of missile and nuclear tests in defiance of U.N. sanctions.
Treasuries and investors are also keeping a close eye on the French presidential race. Campaigning ramped up ahead of the first round of the presidential election, due this month. Left wing candidate Jean-Luc Melenchon’s has surged higher in polls. This is adding to investors’ worries as it becomes unclear who will win the contest.