(Bloomberg) -- Treasuries rose, building on their biggest monthly advance in more than two years, as tumbling oil prices eased concern about inflation pressure leading to additional Federal Reserve interest-rate hikes.
Ten- to 30-year maturities led gains, with yields for those tenors declining about four basis points to touch the lowest levels since September.
Shorter-dated debt rose less as lower oil prices helped stabilize US stocks. Equities weakness concentrated in large technology company shares benefited the Treasury market last month as investors piled into lower-risk assets.
“The historical negative correlation between bonds and equities seems to have returned over the past month, and the gains today could be related to investors looking to protect further downside in equities,” said Steven Zeng, an interest-rate strategist at Deutsche Bank. The oil price slide “also supports Treasury yields to move lower.”
The US 10-year yield declined as much as six basis points to under 4.87%, the lowest level since Sept. 10.