Treasury yields held steady on Tuesday despite the unveiling of new stimulus measures in Europe and a spree of promising coronavirus vaccine and treatment trials, as fears over the coronavirus surge in the U.S. lingered.
Earlier on Tuesday, the European Commission agreed to a 750 billion euro stimulus package. The stimulus is designed to help countries and sectors in the region most affected by the coronavirus pandemic. In the U.S., investors are monitoring the talks in Washington on the next coronavirus relief bill.
Risk sentiment was buoyed on Monday after an experimental vaccine developed by AstraZeneca and Oxford University produced an immune response in an early-stage clinical trial. A vaccine from U.S. drugmaker Pfizer and German biotech BioNTech also showed promise in a second early trial, the companies said Monday.
Meanwhile, British pharmaceutical firm Synairgen said its inhaled treatment reduced the risk of hospitalized patients deteriorating to the point of requiring a ventilator.
Despite all this, the bond market is "is just not confident in a robust economic recovery," said Peter Boockvar, chief investment officer at Bleakley Advisory Group. Boockvar pointed to this reason when explaining why he thinks Treasury yields haven't moved higher Tuesday.
New coronavirus cases in Florida continued to soar on Monday with more than 10,000 infections recorded for the sixth consecutive day. However, California saw hospitalizations and new infections begin to stabilize following its recent surge.