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Treasury yields plunge amid escalating global coronavirus fears
U.S. government debt prices surged on Monday morning as investors run for cover amid fears that the coronavirus is spreading globally.At around 2:15 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was sharply lower at 1.4241%, while the yield on the 30-year Treasury bond fell to a new all…
U.S. government debt prices surged on Monday morning as investors run for cover amid fears that the coronavirus is spreading globally.
At around 2:15 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was sharply lower at 1.4241%, while the yield on the 30-year Treasury bond fell to a new all time low of 1.8782%.
Markets had largely been working off an assumption that the deadly virus was mostly contained in China, but South Korea put the country on its highest alert level on Monday as infections surpassed 760 and deaths rose to seven.
Meanwhile, a third person in Italy has died from the virus with the number of cases surging to more than 150.
China's National Health Commission, as of Sunday, has reported 77,150 confirmed cases and 2,592 deaths.
Treasury yields fell on Friday, with the 30-year bond hitting an all-time low, as a combination of coronavirus fears and weak U.S. business activity data drove a flight into traditional safe haven assets. Both the 10-year and 30-year yields are down nearly 50 basis points so far this year.
Auctions will be held Monday for $45 billion of 13-week Treasury bills and $39 billion in 26-week bills.
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