Treasury yields tumbled on Monday as investors run for cover amid fears that the coronavirus is spreading globally.
The yield on the benchmark 10-year Treasury note, which moves inversely to price, plunged 8 basis points to 1.3856%, its lowest level since July 2016. The yield on the 30-year Treasury bond plummeted to a new all time low of 1.8321%.
“The most important number in the US Treasury market has become 1.3180% – the all-time record low yield mark set in the aftermath of Brexit,” Ian Lyngen, BMO’s head of U.S. rates, said in a note Monday. “If that level is breached, look out below.”
Spiking coronavirus cases in Italy, South Korea and the Middle East sparked fears of further spread beyond China. South Korea put the country on its highest alert level on Monday as infections surpassed 760 and deaths rose to seven.
Read more: CNBC.
