TREASURIES-U.S. yields fall as Goldilocks economy view intact

By Chuck Mikolajczak NEW YORK, July 6 (Reuters) – U.S. Treasury yields fell on Tuesday, with the benchmark 10-year note on track for its longest streak of declines in 16 months as investors look for signals on the Federal Reserve’s policy path and after data signaled the service sector slowed. A gauge of activity from the Institute for Supply Management on the U.S. services sector, which accounts for about two-thirds of economic activity, showed moderate growth in June, down from the record pace in May. The data comes on the heels of Friday’s employment report, which was viewed by many as showing an improving labor market, but not enough to signal an economy that may be prone to overheating. “From an economic data standpoint, now you have a couple of big data pieces that are pointing to an economy that is not running hot, there is that piece which is very good and you definitely see yields reflecting that,” said Jim Barnes, director of fixed income at…

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