U.S. Treasury bond yields collapsed on Friday, along with a drop in stock index futures, as investors reacted negatively to the news that a new strain of coronavirus had been detected in South Africa.
The yield on 10-year Treasury bonds dropped by 11.6 basis points, reaching 1.528%, while the yield on 30-year bonds was 1.88% (-9.1 basis points).
In response to the new Covid strain, the British government has decided to suspend flights from six African countries. More than 30 mutations have been identified in the new strain of the virus, as a result of which experts have warned that existing vaccines may be ineffective against it.
At the beginning of this week, the yield of 10-year treasury bonds was near the level of 1.68% amid news about the reassignment of Jerome Powell to the post of head of the Fed.