U.S. Treasury yields slumped on Monday as the number of coronavirus cases continued to rise, dampening the outlook for a strong economic recovery, while investors looked for additional clues on a potential stimulus package.
The yield on the benchmark 10-year Treasury note fell to 0.926%, while the yield on the 30-year Treasury bond dropped to 1.685%. The 2-year rate traded at 0.143% and hit its lowest level in about a month. Yields move inversely to prices.
Coronavirus cases — and deaths — in the U.S. have continued to rise rapidly, with confirmed infections reaching more than 14.7 million, data compiled by Johns Hopkins University showed. On Thursday alone, more than 2,800 Covid-related deaths were confirmed in the U.S.
"Wave 3 is unfolding in the US and the source of case growth is changing," wrote Tom Lee, head of research at Fundstrat Global Advisors, noting this latest batch of cases largely comes from the New York tristate area, Florida, California, Arizona and Texas.
"Our base case remains that COVID-19 Wave 3 will not peak until the Spring," he said.
Yields were also under pressure as the wait continued in the U.S. for another round of pandemic relief funding to be signed off, with Congress having been in stalemate for months over a package.
Congress is currently aiming to pass a one-week government funding extension to try and scrape together a coronavirus relief package, a Democratic aide told CNBC.
Money Report
House Speaker Nancy Pelosi said on Friday that she saw "momentum" toward a coronavirus stimulus deal. Senate Minority Leader Chuck Schumer once again called for relief funding after data released Friday showed U.S. jobs growth had slowed in November, while President-elect Joe Biden also called for "urgent action" on a stimulus deal.
— CNBC's Jacob Pramuk contributed to this article.
