US 10-year, 30-year treasury yields flash record lows amid coronavirus fears
- US 10-year and 30-year treasury yields drop to the record low.
- US equity futures down nearly 5.0% daily limit, gold above $1,700.
- The increasing odds of the Fed’s rate cut, coronavirus headlines weigh on market’s risk-tone.
Following its day-start drop to the record low of 0.487%, the US 10-year treasury yields seesaw near 0.522%, down 20 basis points, amid the initial minutes of Tokyo open on Monday.
Additionally, the 30-year treasury yields slip below 1.0% mark to mark the fresh record low by the press time. Furthermore, the US equity futures also near the -5.0% daily limit.
While increasing fears of the coronavirus (COVID-19) weigh on the market’s risk-tone and push traders to the safe-havens, rising expectations for the Fed’s another rate cut in March seem to weigh on the US bond yields.
The Washington Post recently came out with the news that Some White House officials privately believe the number of US coronavirus cases will double or more in the next 48 hours. On Friday, US Vice President Mike Pence accepted that the nation witnesses a lack of testing kits while a major portion is quarantined.
Elsewhere, Morgan Stanley slashed its 2020 US GDP forecast to 1.5% from 1.8% while expecting another 0.50% rate cut during March followed by a 0.25% rate cut in April.
Traders will keep close eyes on the COVID-19 headlines for fresh impulse amid increasing global fears from the pandemic.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
