US Treasury yields plummeted to historic lows as investors sought safe-haven assets amid growing concerns about the global economic impact of the coronavirus outbreak. The yield on the benchmark 10-year Treasury note fell below 1.5%, while the 30-year Treasury bond yield also reached a record low.
US Treasury yields have fallen to record lows as investors seek safety amid concerns about the economic impact of the coronavirus outbreak. The yield on the benchmark 10-year Treasury note fell below 1.5% for the first time ever, while the 30-year Treasury bond yield also reached a record low.
The flight to safety has been driven by fears that the coronavirus outbreak will significantly slow global economic growth. The virus has already disrupted supply chains and travel, and there are concerns that it could lead to a recession.
Investors are also concerned about the potential for further interest rate cuts by the Federal Reserve. The Fed has already cut interest rates three times in 2019, and some analysts believe that it could cut rates again in the coming months if the economy weakens.
The decline in Treasury yields has had a number of effects. It has made it cheaper for the government to borrow money, and it has also put downward pressure on mortgage rates. In addition, it has made stocks look more attractive relative to bonds, which has helped to support the stock market.
However, the decline in Treasury yields is also a sign of concern about the economy. Investors are clearly worried about the potential for a slowdown, and they are willing to accept lower returns on their investments in order to protect their capital.