LONDON - U.S. 10-year Treasury yields fell to their lowest level in over two weeks on Friday, reflecting mounting worries among bond investors about the economic growth outlook.
The fall in Treasury yields came as European borrowing costs tumbled after weak German and French business activity data. German business activity unexpectedly shrank in July, a preliminary reading of a purchasing managers survey showed.
In early London trade, the 10-year Treasury yield fell to as low as 2.825% and was last down 7 basis points on the day.
Yields were lower across the U.S. curve with 5-year bond yields down around 6 bps at around 2.94%.
The gap between 10 and 2 year U.S. debt, an indicator of recession risks, slipped deeper into negative territory at 24 bps.
Soft U.S. economic data had pushed Treasury yields lower on Thursday. The number of Americans enrolling for unemployment benefits rose last week to the highest in eight months and a gauge of factory activity slumped this month.
(Reporting by Dhara Ranasinghe; Editing by Saikat Chatterjee)