10-year Treasury yield rises slightly after positive vaccine news

Long-maturity Treasury yields rose on Monday after positive vaccine news raised hope for a faster economic recovery from the unprecedented pandemic. 

The yield on the benchmark 10-year Treasury note edged up 2 basis points to 0.6562% and the yield on the 30-year Treasury bond gained 3 basis points at 1.3605%. Yields move inversely to prices.

Yields turned higher after two experimental coronavirus vaccines jointly developed by German biotech firm BioNTech and U.S. pharmaceutical giant Pfizer have received "fast track" designation from the U.S. drug regulator,

Pfizer and BioNTech said they expect to begin a large trial with up to 30,000 participants as soon as later this month, if they receive regulatory approval. The companies expect to have 100 million doses of a vaccine by the end of 2020 and more than 1.2 billion doses by the end of 2021, according to a release. 

Still, investors are closely monitoring the continuing spike in new coronavirus cases in the U.S.

The U.S. has reported more than 60,000 new cases for three consecutive days, bringing total cases in the country past 3.3 million, according to Johns Hopkins University. Florida on Sunday reported 15,299 new cases, by far the highest for a single state since the pandemic began.

Earnings season is set to kick off this week, with major banks Citigroup, JPMorgan and Wells Fargo all set to report Tuesday.

There are no major economic data releases scheduled for Monday.

Auctions will be held Monday for $54 billion of 13-week Treasury bills and $51 billion of 26-week bills.