U.S. government debt prices fell on Tuesday morning as investors seemingly look to capitalize on Monday’s worldwide stock market sell-off on the back of coronavirus fears.

At around 2:20 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was up at 1.3989% having hit its lowest intraday level in over three years on Monday. The yield on the 30-year Treasury bond came off an all-time low to rise to 1.8621%.

A sharp rise in cases of the new coronavirus in Italy, South Korea and the Middle East sparked fears of a global pandemic which will slow the world economy, sending investors running for cover on Monday.

Both the Dow and the S&P 500 suffered their worst single day losses for two years and erased all of their 2020 gains in a single session, but futures indicate that investors are looking to buy the dip on Tuesday morning.

Markets remain attuned to coronavirus developments, with South Korea now reporting 60 new cases to bring the country’s total to 893 infected, while China’s National Health Commission reported 508 new confirmed cases and 71 new deaths as of Monday night.

Traders will also have an eye on Redbook data due at 8:55 a.m. ET and S&P/Case-Shiller home price figures for December expected at 9 a.m. ET.

Auctions will be held for $26 billion in 52-week Treasury bills and $40 billion in 2-year notes at 11:30 a.m. and 1 p.m. ET respectively.

Read More