U.S. government debt prices rose on Thursday morning after another huge sell-off on Wall Street induced by the coronavirus pandemic.
Fears over the economic fallout from the outbreak and uncertainty surrounding Washington’s fiscal response drove the Dow more than 1,400 points lower and into a bear market Wednesday, down 20% from the record close set just last month. Investors have flocked towards the perceived safety of government bonds amid the stock market rout.
The fall into a bear market for stocks marked the end of an expansion that began in 2009, and futures on Thursday pointed to another plunge of more than 900 points at the open.
President Donald Trump late on Wednesday announced the suspension of all travel from Europe for 30 days and met with the CEOs of the nation’s biggest banks to discuss economic responses, after the World Health Organization (WHO) officially declared the virus a pandemic.
On the data front, jobless claims figures for the past two weeks and PPI (producer price inflation) readings for February are due at 8:30 a.m. ET.
Auctions will be held Thursday for $50 billion of 4-week Treasury bills, $40 billion of 8-week bills and $16 billion of 30-year Treasury bonds.