Investors spooked by the coronavirus outbreak continued to flock to the safe haven of government debt on Friday, driving the yield on the 10-year Treasury note to record lows.
After sinking to an all-time low of 0.6572% early in the day, the yield on 10-year debt bounced back to around 0.74%. The 30-year rate, meanwhile, plunged as much as 34 basis points to 1.2036%.
As CNBC reports, “The plunge in yields came amid an exodus from stocks as disruptions to businesses around the world on the back of the coronavirus outbreak heighten fears of a global slowdown.”
Financial markets have continued to reel even though the U.S. Federal Reserve earlier his week cut interest rates by 50 basis points and Congress approved roughly $8 billion in emergency spending to combat the coronavirus.
“It’s a brave new world of 0-handles and we’ve now taken to referencing 10-year yields in basis point