Economics
Treasury 10-Year Yield Sets Record Below 1% on Virus Fears
- Fed’s emergency rate failed to quell concern about economy
- ‘Fed certainly didn’t bring calm, and the virus continues’
Photographer: Andrew Harrer/Bloomberg
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Treasuries surged, driving 10-year yields below 1% for the first time ever, as traders bet the Federal Reserve’s emergency rate cut might not be enough to prevent the coronavirus from chilling the U.S. economy.
The rate on benchmark 10-year notes sank as much as 25.9 basis points to 0.9043%. Two-year yields declined as much as 28.1 basis points to 0.6223%. Swap spreads tightened, possibly a sign that mortgage investors were forced to hedge their portfolios once the 10-year breached 1%, exacerbating the move.