This post was originally published on this site
Mario Tama/Getty Images
U.S. Treasury yields fell Monday as the bond market rallied in response to rising COVID-19 infections across the U.S. and Europe.
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, 0.809% fell 2.5 basis points to 0.816%, while the 2-year note rate TMUBMUSD02Y, 0.145% edged 0.4 basis point down to 0.151%. The 30-year bond yield TMUBMUSD30Y, 1.603% slid 3.7 basis points to 1.609%. Bond prices move inversely to yields.
What’s driving Treasurys?
Coronavirus concerns as Italy and Spain imposed more stringent lockdown measures in a bid to contain the spread of the pandemic. More restrictions on social activity are likely to dent the progress of the recovery across Europe.
The U.S. recorded the highest daily coronavirus case count since the pandemic started on Friday. The U.S. has recorded 225,239 deaths from the coronavirus, according to data aggregated by Johns Hopkins University.
Global equities were on the backfoot, with U.S. equity futures indicating a lower open at the start of Monday’s session.
Some economic data will come out in the morning. The Chicago Federal Reserve’s national activity index for September is due at 8:30 a.m. ET, followed by the last month’s new home sales.
What did market participants say?
“The week is kicking off with a distinctly risk-off tone as prospects for pre-election U.S. fiscal stimulus appear to be dwindling and amid a continued virus surge in Europe and North America,” said Simon Deeley, a rates strategist at RBC Capital Markets.
