U.S. Treasury bond yields rose markedly on Monday, while investors analyzed the latest news regarding a new strain of coronavirus.
The yield on 10-year Treasury bonds rose by 4.4 basis points, reaching 1.529%, while the yield on 30-year bonds was 1.87% (+4 basis points).
On Friday, the yield on 10-year Treasury bonds fell by about 14 basis points in response to increased demand for safe haven assets after the identification of a new strain of the coronavirus "omicron", which the World Health Organization called a "variant of concern".
In addition to the development of the situation around the coronavirus, this week investors will focus on US data.The key will be the report on employment in the nonfarm sector (released on Friday), which may affect the prospects for normalization of monetary policy. In general, experts believe that increased concerns about a new strain of coronavirus will weaken expectations of a Fed rate hike next year.
In addition, Federal Reserve Chairman Jerome Powell will deliver a speech today at 20:05 GMT.