Bonds

Treasury yields dip slightly amid concerns about economic recovery

Treasury yields fell slightly on Monday as investors searched for so-called safe havens amid concerns over the global economy, the spread of Covid-19 and geopolitical tensions.

The yield on the benchmark 10-year Treasury note fell marginally to 0.5815% and the yield on the 30-year Treasury bond dipped one basis point to 1.2215%. Yields move inversely to prices.

The move in yields came as gold prices soared to a new record high.

Recent growing Covid-19 infections in certain parts of the world have raised concerns over the prospects for the global economy. India, Hong Kong, as well as certain regions of Europe, have seen spikes in recent days. 

Treasurys

 "The only meaningful challenge to the low-rate thesis most likely won't materialize until after Labor Day as vaccine results help recast expectations for the duration of the pandemic," Ian Lyngen, BMO's head of U.S. rates, said in a note on Monday.

Data on Monday showed orders for long-lasting factory goods rose 7.3% in June for the second consecutive monthly gain. Economists polled by Dow Jones expected a 5.4% increase. However, core durable goods orders, which exclude the often volatile transportation category, were up 3.3% in June, versus expectations of 3.6% per Dow Jones.

The U.S. Treasury is due to auction $105 billion in 13-week and 26-week bills; $48 billion in two-year notes; and $49 billion in five-year notes.