Treasury yields fell slightly on Wednesday as investors flocked back into risk assets, after China unveiled measures to rein in the spread of a deadly virus.
The outbreak of a new strain of coronavirus in China's Wuhan region sent Treasury yields to a two-week low on Tuesday, with experts calling back the economic fallout from the Severe Acute Respiratory Syndrome (SARS) crisis in 2003. Fears of a global pandemic sent investors running for safety and saw stock markets tumble.
However, China on Wednesday announced sweeping measures to contain the virus, which has killed nine people and infected more than 400. A first U.S. case was confirmed Tuesday in Washington State, but health officials have said the affected individual "poses little risk" to the public.
Investors continued to monitor corporate earnings. IBM forecast full-year profit above market expectations on Tuesday, sending its shares higher, while United Airlines beat Wall Street quarterly profit expectations despite ongoing delays to the Boeing 737 Max aircraft.
Yields gained slightly after data showed U.S. home sales easily beat expectations, jumping to a nearly 2-year high. U.S. home sales increased 3.6% in December to a seasonally adjusted 5.54 million. Economists polled by Reuters expected a gain of 1.3% to 5.43 million units sold.
There are no Treasury auctions scheduled for Wednesday.