U.S. government debt prices were higher Monday morning as concerns over a second wave of coronavirus infections intensified following spikes across the country.
A number of states including Alabama, California, Florida and North Carolina have experienced a rise in Covid-19 cases since they began to reopen their economies. Texas and North Carolina reported record numbers of coronavirus-related hospitalizations on Saturday.
President Donald Trump is planning to push ahead with an indoor campaign rally in Tulsa, Oklahoma on Saturday despite local concern over an uptick in cases.
Risk assets worldwide are starting the week on the backfoot after a significant pullback last week, fueled by rising fears over a second wave and profit-taking following a recent surge in stock prices.
China, the original epicenter of the pandemic, is also subject to concern about a second wave, after Reuters reported that a district of Beijing is in a “wartime emergency” due to the discovery of a new cluster of infections centered around a wholesale market.
Auctions will be held Monday for $60 billion of 13-week Treasury notes and $54 billion of 26-week notes.
There are no major economic data releases scheduled for Monday.