By Nick Godt, MarketWatch
NEW YORK (MarketWatch) -- Treasurys rallied Tuesday, sending yields lower, as investors sought safe havens amid fresh concerns about European banks and economic growth.
Yields on benchmark 10-year Treasurys (UST10Y 2.64, -0.07, -2.65%) fell 6 basis points to 2.64%. Those on 2-year notes (UST2YR 0.49, -0.02, -4.63%) dropped 2 basis points to 0.49%, while those on 30-year bonds (UST30Y 3.70, -0.09, -2.37%) were down 8 basis points to 3.70%.
In Europe, banking stocks came under pressure as regulators met in Basel to finalize new global rules on capital requirements and after The Wall Street Journal reported that the region's recent stress tests underestimated some lenders' holdings of government debt. See full story on the stress tests.
Adding to concerns about economic growth, Germany's manufacturing orders dropped 2.2% in July from the previous month, the economics ministry reported Tuesday. Economists expected a month-on-month rise of 0.5%, according to Action Economics.
On Friday, Treasury prices fell on news that the U.S. economy lost fewer jobs than expected in August. But losses were tempered after another report showed slowing in the U.S. services sector.
