US 10-year yields drop to 15-week low amid coronavirus outbreak
- US 10-year government bond yields decline for the fourth consecutive day.
- China’s coronavirus, the Middle East tension and fresh trade war fears are the main catalysts.
- S&P 500 Futures also lose 1.00%.
The US 10-year treasury yields take round to 1.64%, with an intra-day low of 1.625%, by the press time of the Asian session on Monday. In doing so, the risk-gauge slipped to the lowest since October 09. The bond yields of the world’s largest economy are the barometer of the market’s risk sentiment and tend to decline amid risk aversion.
Not only the US treasury yields but the S&P 500 Futures also portray the market’s risk-off while declining more than 1.0% to the intra-day low 3,253 during the early Asian morning.
The latest bout of the south-run comes from China where fears of coronavirus are ruining the dragon nation’s Lunar New Year celebrations.
As per the latest communication, there are more than 2,700 confirmed cases of coronavirus infected people inside China while the international numbers are still vague.
Read: China covering up true number of Coronavirus mortalities
Also increasing the traders’ worries is the fresh tension from the Middle East as well as the Trump administration's tariff update.
Given the absence of major data/events on the economic calendar, coupled with the Chinese Lunar New Year holidays till February 02, traders will keep eyes on coronavirus headlines for fresh impulse.