Investors flee to safety of US bonds after China plunge

US Treasuries advanced for a fourth day yesterday, the longest winning streak since April, as a plunge in Chinese shares supported demand for the relative safety of government debt.

Benchmark Treasury 10-year note yields extended gains after the New York Stock Exchange suspended trading. They touched a one-month low amid Greece’s struggles to stay in the euro bloc.

The selloff in China fuelled declines in some commodity prices, which helped weigh down bond-market inflation forecasts. Futures show traders have pushed back the timing for the Federal Reserve to raise interest rates later this year.