Treasury yields rebound slightly as investors await clarity on fiscal stimulus - CNBC

Treasury yields climbed slightly on Tuesday as investors sought more details on fiscal stimulus from the Trump administration to battle the coronavirus fallout.

The yield on the benchmark 10-year Treasury note rose just five basis points to 0.77%  after slumping 23 basis points in the previous session. The yield on the 30-year Treasury bond was up slightly at 1.36%. Bond yields move inversely with prices.

The Dow and S&P 500 on Monday suffered their worst plunge since the "Black Monday" crash of 1987, despite the Federal Reserve's announcement of an emergency $700 billion quantitative easing program and a further 100 basis point cut to interest rates.

Stocks are set to rebound after President Donald Trump signaled financial relief for battered industries like airlines.

"The United States will be powerfully supporting those industries, like Airlines and others, that are particularly affected by the Chinese Virus," Trump said in a tweet. "We will be stronger than ever before!"

Investors were still seeking the bottom in stocks and the peak in Treasury prices as the coronavirus outbreak continued to worsen and the administration worked to roll out a clear fiscal policy. 

"There will come a stage in the process when the lows are ultimately established and efforts are made to return the market to some semblance of normality," said Ian Lyngen, BMO's head of U.S. rates. "It's unclear if investors have entered this phase yet as the monetary policy reverberations continue to find their way through the system."

Confirmed cases have now surpassed 182,000, with more than 7,000 deaths, according to Johns Hopkins University, as governments around the world have begun to close their borders and enforce lockdowns.

In the U.S., 4,661 cases have now been confirmed with 85 deaths, with New York Mayor Bill de Blasio calling for a "wartime mentality" to contain the outbreak.

On the data front, U.S. retail sales figures for February are due at 8:30 a.m. ET, before Redbook data for last week at 8:55 a.m. and February's industrial and manufacturing production readings at 9:15 a.m.

There are no Treasury auctions scheduled for Tuesday.

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March 17, 2020 at 07:29PM
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Treasury yields rebound slightly as investors await clarity on fiscal stimulus - CNBC
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