10-year Treasury yield returns to lowest level since July after Bank of Japan keeps rates negative

Treasury yields finished mostly lower on Tuesday, with the benchmark 10-year rate returning to an almost five-month low, after the Bank of Japan kept its negative interest-rate policy and gave little indication of a potential shift in its ultra-loose stance soon.

What happened

• The yield on the 2-year Treasury
  BX:TMUBMUSD02Y
  slipped 1.8 basis points to 4.437%, from 4.455% on Monday.

• The yield on the 10-year Treasury
  BX:TMUBMUSD10Y
  fell 3.4 basis points to 3.921%, from 3.955% on Monday. Tuesday’s level is the lowest since July 26, based on 3 p.m. Eastern time figures from Dow Jones Market Data.

• The yield on the 30-year Treasury
  BX:TMUBMUSD30Y
  dipped 3.3 basis points to 4.035%, from 4.068% on Monday.

What drove markets

Traders were parsing a trio of different bond-market drivers on Tuesday.