While the stock markets were having their third rough day in a row yesterday, there was also some significant news about the bond market. The 10-year U.S. Treasury bond yield fell to a record low yesterday, amid heightened fears about the fast-spreading coronavirus and its effect on the global economy.
The yield on the benchmark 10-year Treasury note, which moves in the opposite direction of its price, fell 4 basis points to 1.302 percent. That's just a notch below its last record low of 1.307 percent, reached last Tuesday.
Why is this happening? Investors sought the safety of U.S. government debt on fears of what the coronavirus will do to global economic growth. That moved them away from riskier assets, like stocks, and toward the safe haven of the U.S. Treasury.
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