Treasury yields fell on Tuesday as investors rushed to safe bonds amid heightened volatility on Wall Street ahead of election day.
The benchmark 10-year Treasury yield plunged to 0.791%, falling for a third consecutive session. The 10-year rate fell nearly 4 basis points on Monday amid a massive sell-off in stocks. The yield on the 30-year Treasury bill also fell to 1.575%. Yields move inversely with prices.
The decline came as market participants became increasingly concerned about the economic impact of an upsurge in coronavirus cases. A wave of new Covid-19 infections across the world has prompted some countries to impose new restrictions as winter approaches.
To date, more than 43.5 million people have contracted Covid-19 globally, with 1.16 million related deaths, according to data compiled by Johns Hopkins University.
On the data front, demand for durable goods rose more than expected in September, as new orders rose 1.9% for the month, compared to 0.4% forecast by a survey of Dow Jones economists.
Consumer confidence for October, the Richmond Fed manufacturing survey for October and vacant homes in the third quarter are all expected to be released at 10:00 a.m., with Dallas Fed services to follow later in the session.
The US Treasury will auction $ 30 billion in 119-day bills, $ 30 billion in 42-day bills and $ 54 billion in 2-year bills on Tuesday.