US government bond yields fell on Tuesday morning, with investors focusing on the explosion of Covid-19 in China and fears of a slowdown in the global economy.
The yield on the benchmark 10-year government securities fell below the baseline to 2.8335% at 3:45 a.m. ET. The yield on the 30-year treasury bond fell less than the base point to 2.9048%. Yields are moving back in price and 1 basis point is equal to 0.01%.
Government bond yields fell on Monday, along with stock market sales. This came amid fears that the outbreak of Covid-19 in Beijing, China, could block and slow economic growth in the region.
Beijing announced late Monday that it would expand mass tests for the virus.
The potential slowdown in economic growth from higher inflation and rising interest rates also remains a concern for investors.
David Pierce, managing director of GPS Capital Markets, told CNBC’s Squawk Box Europe on Tuesday that he believed the Federal Reserve would raise interest rates by 50 basis points in both of the next two policy meetings.
However, Pierce said that these increases could “really accelerate the turnaround in the economy and slow things down so much that they may have to withdraw very quickly – this is a really volatile situation at the moment.”
Regarding the economic data releases to be released on Tuesday, the numbers of durable goods orders in March should come out at 8:30 am ET.
The February S & P / Case-Shiller housing price index is expected to come out at 9 am ET.
The new data on home sales from March and the consumer confidence index for April of CB are scheduled for publication at 10 o’clock ET.
The development of the Russia-Ukraine war also continues to be the focus of investors. At a summit in Kyiv on Sunday, the United States pledged just over $ 700 million in military funding to help Ukraine and other Central and Eastern European allies involved in the military effort.
The US State Department has approved a potential $ 165 million sale of ammunition to Ukraine.
Meanwhile, a $ 48 billion 2-year banknote auction is scheduled for Tuesday.
– CNBC.com staff contributed to this market report.