Long-term Treasury yields fell Friday to their lowest ranges since lockdowns began loosening, as traders sought secure belongings amid rising coronavirus instances.
The yield on the 30-year Treasury fell to 1.284%, its lowest since Might 1, and the yield on the 10-year Treasury hit 0.600%, its lowest since April 24. The unfold between the 2 is the narrowest since Might 15, at 0.682 share factors, in accordance with Tradeweb. Bond costs rise when yields fall.
The yield on the five-year Treasury briefly hit a file low earlier, touching 0.258%, in accordance with Tradeweb.
A narrowing hole between shorter- and longer-dated bonds signifies that traders anticipate rates of interest to stay subdued. The hole between the 2 had widened when investors were more optimistic concerning the financial system rising from the coronavirus lockdowns.
Traders are monitoring rising coronavirus cases and the chance of additional lockdowns curbing the current financial restoration. New coronavirus instances within the U.S. rose by more than 63,000 Thursday, one other single-day file, as hospitals in Texas, California and different states strained to accommodate a surge of latest sufferers.