Coronavirus Pushes Yield On US Treasuries To Historic Low
The coronavirus continued to stoke fear among investors who kept buying US Treasuries, plunging the yield on a 10-year note to record low of 0.676 percent on Friday.
The demand for safe haven assets has shot up as jittery investors have shun tumbling stock markets in the face of looming recession as the coronavirus outbreak grew stronger in the world.
The interest rates on all short and long-term US Treasuries have dropped as stock market has been clobbered by the deepening coronavirus fear.
The 30-year Treasury yield plummeted to a record low of 1.278 percent.
The demand for two-year note also went up, bringing down the interest rate to 0.454 percent, lowest since 2015.
The virus, which originated in China late December last year, has killed hundreds and infected thousands across the world.
China, the world’s factory, is worst hit where big production plants remain shut and foreign companies have suspended operations. This has sparked fears of global slowdown.
The US stocks have continued to slide, pushing investors into buying US Treasuries – a sought-after investment in the time of distress.
Cooper Square News 