Treasury yields popped on Monday as investors cheered news that an experimental coronavirus vaccine showed promising early signs.
Biotech firm Moderna's closely watched early-stage human trial for a coronavirus vaccine produced Covid-19 antibodies in all 45 participants, the company announced Monday, sending the company's shares surging more than 17%.
Investors also digested comments from Federal Reserve Jerome Powell that the U.S. economy could shrink by more than 30% in the second quarter as the full impact of nationwide lockdowns is realized. Still, Powell told "60 Minutes" in an interview aired Sunday night that the economy will likely rebound robustly and avoid a long-term depression.
Meanwhile, ties between Washington and Beijing continued to fray on Sunday. U.S. Secretary of State Mike Pompeo warned China not to interfere with the work of American journalists in Hong Kong, suggesting that it could affect the U.S. assessment of the special administrative region's status.
China's commerce ministry on Sunday voiced its opposition to the latest U.S. rules imposed on tech giant Huawei and said it could take any necessary action to safeguard Chinese firms' rights and interests.
There is no major U.S. economic data due Monday.
Auctions will be held Monday for $63 billion of 13-week Treasury bills and $54 billion of 26-week bills.