European countries' fiscal woes and the poor outlook of US economic recovery have sent investors scurrying to buy US Treasuries.

This risk-aversion strategy of investors has forced the US Treasuries' yield to fall by a large margin. The benchmark 10-year Treasury note's yield dropped to 2.924 percent on June 30, the weakest since April 2009, while the 30-year Treasury bond's yield touched 3.892 percent, the lowest since October 2009.

Increasing worries over a potential double-dip global recession have, however, rallied the US Treasuries market and made them the best-performing fixed-income assets.