U.S. government debt prices were lower Wednesday morning, as investors sought to assess the potential economic impact of China’s fast-spreading coronavirus.
The outbreak, which has infected people in over two dozen countries, was described as a “very grave threat” to the world by the director-general of the World Health Organization (WHO) on Tuesday.
The WHO’s Tedros Adhanom Ghebreyesus also told reporters at a news conference that the United Nations health agency had identified the flu-like virus as COVID-19. The CO stands for corona, the VI for virus and the D for disease, Tedros said.
Stateside, Federal Reserve Chairman Jerome Powell said Tuesday that the U.S. central bank was “closely monitoring” the virus, its impact on China and the effect it could have on global economic growth.
On the data front, the Federal budget for January will be released at 2 p.m. ET. Philadelphia Fed President Patrick Harker and Dallas Fed President Robert Kaplan will both comment on the world’s largest economy at separate events on Wednesday.
Meanwhile, the U.S. Treasury is set to auction $27 billion in 10-year notes on Wednesday.