Traders work on the floor at the New York Stock Exchange on April 14, 2025.
The 10-year Treasury yield edged lower on Tuesday, a reprieve amid a period of volatility in the bond market.
The benchmark 10-year Treasury yield slipped around 3 basis points to 4.335%. The 2-year Treasury yield rose by about 1 basis point to 3.841%.
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WATCH HEREOne basis point is equal to 0.01%. Yields move inversely to prices.
The development follows a week of volatility in the bond market, which saw a more than 50-basis-point surge in the 10-year Treasury yield.
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SIGN UP Although President Donald Trump's 90-day tariff pause briefly pulled yields lower, the 10-year yield still rebounded to finish above 4.5% on Friday.
The scale of the sell-offs fueled questions about who are the ones letting go of Treasurys.
"Investors in the U.S. have worried for decades that holdings of U.S governments by Chinese and Japanese investors were at risk," said Carol Schleif, chief market strategist at BMO Private Wealth.
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China is America's second-largest foreign creditor after Japan, holding about $760 billion in Treasury securities.
Additionally, the combination of debt concerns and hedge fund selling could have contributed to the sell-off in Treasurys, said Felix Brill, chief investment officer at VP Bank.
"For instance, we have seen an increase in CDS spreads for U.S. debt, and from past episodes, we know that margin calls and the need for liquidity can lead to additional market stress," he told CNBC.
