Treasuries have outperformed in the US and their yield has beaten the expectation of traders. On Tuesday, The benchmark 10-year yield climbed 12 basis points to 3.10%, the two-year yield moved four basis points higher to 0.44% and the 30-year yield jumped 11 basis points to 4.31%.

The MMD scale has shown that the two-year yield declined for the first time in more than three weeks and was at 0.42%.

Experts believe that the main reason behind the rise is that most of the investors transferred cash from fixed income markets and into equities. The move of the investors allowed all three major stock market indexes to climb more than 1%. Market analysts said that there is still a lot of cash in the market to keep the growth up.

Chief Economist, David Resler at Nomura Global Economics said that the consumer spending was low in May and most of the sector reported a decline. He added that May was not a good month for both consumers and retailers. Employment rate in the country fell, consumer confidence declined and stock market was unstable but the economy is likely to show upwards trend in June.