Long-maturity bond yields dipped on Tuesday as Investors continued to grapple with a continuous rise in coronavirus cases in the U.S.
Treasurys
The yield on the benchmark 10-year Treasury note was slightly lower at 0.663% and the yield on the 30-year Treasury bond was also down at 1.423%. Yields move inversely to prices.
To date, nearly 3 million people have contracted the virus in the U.S., with 130,306 deaths nationwide, according to data compiled by Johns Hopkins University. The number of people hospitalized with Covid-19 grew by 5% or more Sunday in 23 states, including Texas, which reported a record of more than 8,000 hospitalizations on Sunday
Atlanta Federal Reserve President Raphael Bostic told The Financial Times the U.S. economic recovery will be "bumpier" as coronavirus cases continue to rise.
"While the nuances of the Covid-19 pandemic will continue making headlines and providing tradeable news, the wide error bands around potential economic outcomes ensure we're unlikely to see a retest of the March 9th low for 10-year yields at 31.3 bp or a breach of the 1.273% peak which followed eight short trading days later," Ian Lyngen, BMO's head of U.S. rates, said in a note Tuesday.
Stateside, data published Monday showed the Institute for Supply Management's nonmanufacturing index rose more than expected in June.
The U.S. Treasury will auction $35 billion of 119-day bills, $35 billion of 42-day bills and $46 billion of 3-year notes.
— CNBC's Eustance Huang contributed to this report.