10-year Treasury yield hits new record low of 1.27%
10-year Treasury yield hits new record low of 1.27%
The yield on the benchmark 10-year Treasury note resumed its slide on Thursday and fell to a new record low as concerns over the impact of the coronavirus dogged financial markets around the globe.
The 10-year Treasury yield dropped 3 basis points to 1.27% for the first time ever while the 30-year yield slipped a similar amount to 1.779%. The 10-year rate has fallen 20 basis points since Monday in a reflection of global demand for the relative safety and positive yield U.S. debt offers. Bond yields fall as prices rise.
The move lower in yields also reflects traders’ expectations the Federal Reserve will step in at some point and cut rates. However, many economists doubt the central bank will deliver such relief and whether it will be effective.
The coronavirus, which began in Wuhan, China, has spread across the globe in recent weeks and sparked fears that it could hamper global economic activity if unchecked by effective government intervention.
