Bonds

10-year Treasury yield falls for a third straight day amid market volatility

Treasury yields fell on Tuesday as investors flocked to safe bonds amid heightened volatility on Wall Street ahead of Election Day.

The yield on the benchmark 10-year Treasury note dipped to 0.791%, falling for a third straight session. The 10-year rate dropped nearly 4 basis points on Monday amid a big sell-off in equities. The yield on the 30-year Treasury bond was also down at 1.575%. Yields move inversely to prices.

Treasurys

The decline came when market participants are increasingly concerned about the economic impact of an upsurge in coronavirus cases. A wave of new Covid-19 infections around the world has prompted some countries to impose fresh restrictions as winter looms.

To date, more than 43.5 million people have contracted Covid-19 worldwide, with 1.16 million related deaths, according to data compiled by Johns Hopkins University.

On the data front, demand for durable goods surged more than expected in September with new orders rose 1.9% for the month, compared to the 0.4% expectation from a Dow Jones economists survey.

Consumer confidence for October, the Richmond Fed manufacturing survey for October and third-quarter housing vacancies are all scheduled to be released at 10:00 a.m., with Dallas Fed services to follow slightly later in the session.

The U.S. Treasury will auction $30 billion of 119-day bills, $30 billion of 42-day bills, and $54 billion of 2-year notes on Tuesday.