Treasury yields fall amid concerns about pandemic and further stimulus
Treasury yields fell on Monday as signs of a worsening pandemic drove investors into safe assets.
The yield on the benchmark 10-year Treasury note dropped 3 basis points to 0.6601% and the yield on the 30-year Treasury bond also fell about 5 basis points to 1.4026%. Yields move inversely to prices.
Investor anxiety around the coronavirus pandemic grew as the U.K. leader is reportedly considering another national lockdown to act as a “circuit-breaker” to stop the spread of the virus. The plans to introduce stricter measures on the public come as daily new infections rise, with almost 4,000 new cases reported Sunday.
“Concerns with rising Covid-19 cases in Europe and the risks of a fresh lockdown in London have contributed to the prevailing risk off sentiment,” Ian Lyngen, head of U.S. rates, said in a note Monday. “We’re reminded that the magnitude of the economic fallout from the coronavirus leaves the path to regaining the production losses long and fraught with hazards.”
Reference: CNBC
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