Treasury yields inched lower on Monday as investors tentatively reacted to lingering worries around the coronavirus, amid questions whether supply chains and factories in China will reopen soon.
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, -1.41% was down 0.2 basis point to 1.575%, while the 2-year note rate TMUBMUSD02Y, -1.43% edged 0.6 basis point lower to 1.393%. The 30-year bond yield TMUBMUSD30Y, -1.10% fell 0.5 basis point to 2.037%.
What’s driving Treasurys?
The lack of movement in both stocks and bonds comes as investors look to gain visibility on how the coronavirus could upend manufacturing in China, and spill over into the broader global economy. Though workers across the nation are supposed to start returning back to factories from Monday after the Lunar New Year holiday were extended, efforts to stanch the spread of the pathogen has led some businesses to stay shut.
See: Investors brace for coronavirus shock as China factories poised to reopen Monday
More economists are forecasting a sharp slowdown for the Chinese economy with the coronavirus outbreak showing few signs of ending soon. Health officials in China have now reported more than 40,000 cases and over 900 deaths from the coronavirus, now surpassing the death toll from SARS.
Investors will also see some speeches from senior central bankers at the Federal Reserve. San Francisco Fed President Mary Daly and Philadelphia Fed President Patrick Harker are expected to speak later in the afternoon.
Read: As coronavirus infections exceed 37,000, here’s how it spread so rapidly
What did market participants’ say?
“The key this week is how many factories come back on line and to what extent things are delayed again,” wrote Peter Boockvar, chief investment officer of the Bleakley Advisory Group.
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