Treasury yields lower as coronavirus cases rise, China extends rally

US News

At around 2:15 a.m. ET, the yield on the benchmark 10-year Treasury note was lower at 0.6693% and the yield on the 30-year Treasury bond was down at 1.4253%. Yields move inversely to prices.

Market focus was largely attuned to heightened expectations of an economic recovery in China, following speculation the world’s second-largest economy was trying to spark a major domestic bull run.

On Monday, China’s Shanghai composite jumped nearly 6% after state-owned China Securities Journal said investors should look forward to the “wealth effect of the capital markets” and the prospect for a “healthy bull market.”

Stateside, data published Monday showed the Institute for Supply Management’s nonmanufacturing index rose more than expected in June.

The index climbed to 57.1 last month, registering the first expansion within the sector in three months.

The stronger-than-anticipated reading comes as coronavirus cases in the country continue to rise. To date, nearly 3 million people have contracted the virus in the U.S., with 130,306 deaths nationwide, according to data compiled by Johns Hopkins University.

On the data front, the monthly Job Openings and Labor Turnover Survey (JOLTS) for May will be released at 10 a.m. ET.

The U.S. Treasury will auction $35 billion of 119-day bills, $35 billion of 42-day bills and $46 billion of 3-year notes.

— CNBC’s Eustance Huang contributed to this report.

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