Traders piled into authorities bonds and rapidly recalibrated their expectations for rate of interest will increase in response to the brand new Covid-19 variant first recognized in South Africa.
The yield on the 10-year U.S. Treasury bond fell as little as 1.500% Friday, from 1.644% earlier than the Thanksgiving buying and selling vacation, certainly one of its largest intraday percentage-point drops because the preliminary coronavirus market panic in March 2020. Bond costs rise as yields fall.