* China stock slide, Europe political concerns boosts bonds
* Quarter-, month-end demand adds bid for Treasuries
* Treasury to sell $30 bln seven-year notes
By Karen Brettell
NEW YORK, June 28 (Reuters) - U.S. Treasury yields fell to one-month lows on Thursday as fears about trade wars harming global growth bolstered demand for safe haven bonds, with month- and quarter-end rebalancing adding an extra boost for the debt.
Trade war fears have sent U.S. stocks lower this week while sliding Chinese stocks and a weakening yuan has also raised concerns that there could be global contagion from the region.
Portfolio managers are also hesitant to take on risk heading into the quarter-end.
“We’re seeing a cautious conclusion to the quarter from the point of view of risk aversion,” said John Herrmann, a director in rates strategies at MUFG Securities Americas in New York.
Benchmark 10-year notes fell 1/32 in price to yield 2.831 percent, after earlier dropping to 2.822 percent, the lowest since May 31.
The yield curve between two-year and 10-year notes traded just above the low of 32 basis points reached on Wednesday, which was the flattest level since 2007.
Chinese shares slumped to fresh two-years lows on Thursday and were set for their worst monthly performance in years as trade tensions with the U.S. and worries about debt dimmed the outlook for China’s economy.
U.S. data on Thursday also showed that the U.S. economy slowed more than previously estimated in the first quarter amid the weakest performance in consumer spending in nearly five years, which economists blamed on escalating tensions between the U.S. and its trade partners.
Gross domestic product increased at a 2.0 percent annual rate in the January-March period, the Commerce Department said on Thursday in its third estimate of first-quarter GDP, instead of the 2.2 percent pace it reported last month.
A row over migration policy in Germany’s coalition government has added to risk aversion.
Under severe pressure from conservative allies at home, German Chancellor Angela Merkel called on European leaders on Thursday to forge a common approach to migration, calling it a “make or break” issue for Europe.
The Treasury Department will sell $30 billion in seven-year notes on Thursday, the final sale of $100 billion in short- and intermediate-dated supply this week.
The Treasury saw solid demand for $34 billion in two-year notes on Tuesday and strong demand for $36 billion in five-year notes on Wednesday. (Editing by Susan Thomas) )