Flight to safety drives US 10-year Treasury yield below 2

Washington (Jan 6)  U.S. government debt prices spiked on Tuesday as the price of oil price continued its free-fall, Greece prepares for a snap general election that will determine its future in the euro zone, and fears over global growth persist.

The 10-year benchmark Treasury note yield slid below 2 percent to 1.992 percent for the first time since October last year as investors looked to a perceived safe haven, after closing at 2.037 percent on Monday.

Over the weekend, a report in German magazine Der Spiegel said that Chancellor Angela Merkel's government was prepared for a Greek exit from the euro zone. There is no trading in Greek assets on Tuesday due to a public holiday.

Oil prices also continued to fall, with U.S. crude trading below $49 a barrel while Brent crude lost around $1.3 during the morning session and was at $51.60 a barrel in early trade.

Data expected on Tuesday includes December's non-manufacturing ISM, at 10.00 am E.T., which is anticipated to ease from November's level, which had marked the second-highest reading since 2005.

U.S. factory orders data for November are also due at 10.00 am E.T. and are expected to see their third consecutive month-on-month fall.

Source: CNBC