U.S. government debt prices were lower Wednesday morning after yields hit record lows amid fears that the new coronavirus outbreak is becoming a pandemic.
At around 2:10 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.3471%, while the yield on the 30-year Treasury bond was also up at 1.8267%.
The 10-year yield fell to a record low on Tuesday as concerns about the global economic impact of the coronavirus sent investors running for safety, as evidenced by the Dow’s worst two-day point loss in history.
The U.S. Centers for Disease Control and Prevention has warned Americans to prepare for the virus to arrive stateside, suggesting a pandemic is inevitable.
New coronavirus cases have emerged across Europe, most recently in Austria, Switzerland and Spain, while the virus spread south in Italy to take the country’s death toll to 11, with new cases surpassing 320.
South Korea has reported 169 new cases of the virus, taking its total to 1,146 with 11 fatalities, while a U.S. soldier stationed in the country has also tested positive. Total confirmed cases globally have surpassed 80,200 with at least 2,704 deaths.
January new home sales data is due at 10 a.m. ET, while an auction for $41 billion in 5-year Treasury notes is scheduled for 1 p.m. ET.