Interest Rate Update – Concerns of Coronavirus Impacts Markets
Global as well as National news have the yield on the benchmark 10-year Treasury note (US10Y) acting erratically to start 2020. The US10Y closed at 1.74%, 15 basis points below the 1.88% high that started the year. Increase concern over the news of the spreading of coronavirus in a remote area of China, combined with mixed earning reports, has investors looking for a more comfortable investment. The yield is worth monitoring until the outbreak is fully contained and fears or a global outbreak diminish.
Despite all the fluctuating, rates remain at historic lows and don’t appear to have the impetus to move significantly higher in the near future.