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Treasuries Extend Last Friday's Advance On Lingering Virus Concerns

Following the notable advance seen last Friday, treasuries saw some further upside during the trading session on Monday.

Bond prices moved higher over the course of the morning and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.1 basis points to 1.547 percent.

The continued strength among treasuries came amid lingering concerns about the economic impact of the deadly coronavirus outbreak.

The Chinese government revealed Sunday night that a total of 40,171 cases of coronavirus have been confirmed, with 908 people dying from the disease.

World Health Organization Director-General Tedros Adhanom Ghebreyesus also voiced concerns about the virus being spread from people with no travel history to China, saying, “We may only be seeing the tip of the iceberg.”

Chinese President Xi Jinping has pledged to win the fight against the outbreak, with the Chinese leader saying the country will speed up the development of drugs aimed at treating the deadly pneumonia-like virus.

Overall trading activity was somewhat subdued, however, as some traders stuck to the sidelines ahead of the release of closely watched reports on consumer prices, retail sales and industrial production later this week.

Federal Reserve Chairman Jerome Powell is also due to head up to Capitol Hill in the coming days for his semi-annual testimony to Congress.

Powell is slated to testify before the House Financial Services Committee on Tuesday and the Senate Banking committee on Wednesday.

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