U.S. government debt prices were higher Monday morning as cases of the coronavirus in the U.S. continued to surge, while leaders on both sides of the Atlantic looked for agreements on new fiscal stimulus to shore up their economies.
At around 1:40 a.m. ET, the yield on the benchmark 10-year Treasury note was lower at 0.6217% and the yield on the 30-year Treasury bond edged down slightly to 1.3225%. Yields move inversely to prices.
Florida reported more than 10,000 new Covid-19 cases for the fifth consecutive day on Sunday, with cases nationwide now exceeding 3.7 million and rising by around 70,000 per day, according to Johns Hopkins University, even as President Donald Trump vowed that “it’s going to be under control.”
Congress is set to begin debating a fresh coronavirus aid package this week, aiming to finalize legislation on help for households and business protections in the coming weeks.
The Washington Post reported Sunday that the Trump administration is seeking to block billions of dollars for state-run testing and tracing efforts, driving divisions within the Republican Party. The administration could also reportedly hamper funding for the Centers for Disease Control and Prevention, the Pentagon and the State Department to tackle the pandemic.
In Europe, leaders are also embroiled in tough negotiations over a new 750 billion euro ($858.6 billion) coronavirus recovery fund, with the 27 EU countries seemingly at an impasse after three days of talks.
There are no major economic data releases scheduled for Monday.
Auctions will be held Monday for $54 billion of 13-week Treasury bills and $51 billion of 26-week bills.