Treasury yields fall amid fears of second wave of coronavirus infections

U.S. government debt prices were higher Tuesday morning amid growing investor concerns over the possibility of a second wave of coronavirus infections.

At around 2 a.m. ET, the yield on the benchmark 10-year Treasury note was down at 0.6938% and the yield on the 30-year Treasury bond was lower at 1.4011%. Yields move inversely to prices.

Market optimism over efforts to reopen the economy was dampened Monday after the Chinese city of Wuhan, the original epicenter of the Covid-19 pandemic, reported its first new cases since lifting lockdown measures.

States across the U.S. and countries around the world have begun easing lockdown measures implemented to contain the coronavirus pandemic, which has ravaged the global economy.

President Donald Trump also said on Monday that he opposed renegotiating the “Phase One” trade agreement signed between Washington and Beijing in January, after China’s state run newspaper reported discontent among government advisers.

Prior to the coronavirus pandemic, markets had been attuned to protracted trade negotiations between the world’s two largest economies.

On the economic data front, April’s U.S. inflation figures are due for release at 8:30 a.m. ET. on Tuesday.

Auctions will be held Tuesday for $35 billion of 119-day Treasury bills, $65 billion of 42-day bills and $32 billion of 10-year notes.