10-year Treasury yield falls below 1.7% amid coronavirus fears

The benchmark 10-year Treasury yield hit its lowest level since October on Friday amid increasing fears of the deadly coronavirus.

The yield on the benchmark 10-year Treasury note fell 3 basis points to 1.698%, the first time it dipped below 1.7% since October. The yield on the 30-year Treasury bond was also lower at 2.161%. Bond yields move inversely to prices.

Yields extended their losses Friday after a gauge on U.S. manufacturing sector showed weakness. The first reading of PMIs (Purchasing Managers Index) from IHS Markit for January came in at 51.7. Economists polled by Dow Jones were expecting a manufacturing reading of 52.5.

A reading above 50 shows an expansion in the industry.

Market players continue to monitor the spread of the China coronavirus, as the death toll rose to 25 and the amount of confirmed cases increased to 830. The virus originated in China, but cases have also been reported in the U.S., Japan and South Korea.

The World Health Organization on Thursday called the outbreak an “emergency in China,” but said it didn’t yet constitute a global public health emergency, helping to slightly ease fears over the epidemic.

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