10-year Treasury yield jumps the most in more than 6 years to above 0.7%

• Treasury yields soared from record lows as investors flocked to the stock market following its worst day since the financial crisis.
• The yield on the benchmark 10-year Treasury note jumped 22 basis points to around 0.722%, the biggest gain since July 2013. The benchmark rate tanked to a record low of 0.318% on Monday. The yield on the 30-year Treasury bond also climbed back above 1%, last trading at 1.222%.
• Stock futures pointed to sharp gains at the open Tuesday with the Dow Jones Industrial Average set to soar more than 1,000 points. S&P 500 futures were up 5% earlier in the session, reaching their upside limit.
• The market suffered a historic sell-off in the previous session, with the Dow and the S&P 500 plunging 7.8% and 7.6%, respectively, both posting their worst day since 2008. Investors crowded into Treasurys for safety, pushing yields to record lows.
• The rally in stock futures came after President Donald Trump floated the idea of “a payroll tax cut or relief” to offset the negative impact from the coronavirus. The potential tax incentives come on top of an $8.3 billion spending package Trump signed last month to aid the US’ response to the virus.

(Source: CNBC)