(Bloomberg) — Surging Treasuries drove the yield on the 10-year note below 1.2% for the first time since February as coronavirus concerns weighed on the prospects for the global economy and drove investors toward havens.
The yield on the 10-year security dropped as much as 9 basis points to 1.197%.
The resurgence of Covid-19 is stoking a risk-off mood as investors consider whether new lockdown restrictions will sap the economic rebound and reverse an equity rally that had driven stocks to record highs. The decline in Treasury yields may be a signal of cracks in the global recovery, putting the onus back on monetary and fiscal authorities to support ailing economies even as inflation remains elevated.
And global equities are getting clobbered.
As The Fed’s balance sheet hits $8.2 trillion and near zero effective funds rate.
At least Nickel futures are up.