By Joseph Adinolfi, MarketWatch

Treasury yields declined Tuesday as global stocks plummeted, pushing investors into the perceived safety of the U.S. sovereign-bond market.

The yield on the 10-year Treasury note was down three basis points to 2.174% in recent trade, according to Tradeweb data. The two-year yield was down 2.4 basis points to 0.716%. Yield for both bonds hit their lowest levels since Aug. 24.

Read: Dow sinks over 400 points as weak China data batter U.S. stocks (http://www.marketwatch.com/story/china-growth-fears-slam-us-stock-futures-sharply-lower-2015-09-01)

"Bonds seem to be taking their cues from equities this morning, which are pretty broadly selling off," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott.

Some market strategists wondered why yields didn't decline further. Yields move inversely to prices, rising as they fall.

(https://twitter.com/elerianm/status/638779740627824640)

Yields started moving lower during the Asia trading day after the China Federation of Logistics and Purchasing's official manufacturing purchasing managers index came in at 49.7, down from 50.0 (http://www.marketwatch.com/story/china-factory-activity-slips-to-3-year-low-2015-09-01) a month ago -- a reading that indicated contraction.

Read:Treasurys finish flat after volatile August (http://www.marketwatch.com/story/treasurys-buoyed-as-investors-look-ahead-to-payrolls-2015-08-31)

They continued to decline after the Institute for Supply Management said its manufacturing index dropped to 51.1% (http://www.marketwatch.com/story/us-manufacturing-growth-weakest-since-mid-2013-ism-says-2015-09-01) in August, falling short of forecasts.

The Dow Jones Industrial Average shed 469.68 points, or 2.8%, to 16,058.35. The S&P 500 finished down 58.33 points, or 2.96%, at 1,913.85.

The Stoxx Europe 600 fell 2.7% to close at 352.89, with no sectors in positive territory.

Read: European markets slump after weak factory data (http://www.marketwatch.com/story/european-markets-fall-as-weak-factory-data-piles-on-pressure-2015-09-01)

Investors sold core European debt, sending the yields on 10-year German and French bonds higher. The benchmark German bund was up 1.2 basis points to 0.801%, while the French benchmark rose 1.7 basis points to 1.157%.

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(END) Dow Jones Newswires

September 01, 2015 16:22 ET (20:22 GMT)