Treasuries were resurgent Tuesday as investors sought out safer assets amid ongoing worry about U.S. regional banks and as economic data pointed to a softening labor market.
Yields on Treasury notes dived, with maturities from two- to three-year sectors leading the way, dropping about 19 basis points (bps) or more on the day. The moves, helped also by a slide in oil prices, reversed shifts from the previous day when Treasury rates took a notable leg up.
The activity came as the KBW Bank Index slumped. PacWest Bancorp and Western Alliance Bancorp were at the forefront of the selloff, with trading shares on the former being halted amid the plunge. Meanwhile, vacancies at U.S. employers fell in March by more than forecast and layoffs jumped, indicating softening demand for workers.
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