The yield on the 10-year Treasury bond plummeted to a historic low of below 1 percent this week as stock markets continued to bleed amid the swirling coronavirus fears.
The fast-spreading virus, which originated in China, has disrupted manufacturing activities and shuttered factories, spooking investors who invest in US Treasuries.
The surge in demand for safe-haven assets had led to an increase in their prices, bringing down the yields.
Since the outbreak of the virus grew strong, the yields on short-term Treasury bonds have also dipped, indicating the possible slowdown in the economy.
The Federal Reserve cut by 50 basis points to prop up the US economy in the face of increasing worries of the virus. The unscheduled rate cut was the first once since the 2008 subprime crisis.
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