2020.02.2419:25:00UTC+00Treasuries Move Sharply Higher Amid Coronavirus Spread

Treasuries moved sharply higher during trading on Monday, extending the strong upward move seen over the two previous sessions.

Bond prices spiked at the start of trading and remained firmly positive throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 9.4 basis points to 1.377 percent.

With the substantial decrease on the day, the ten-year yield ended the session at its lowest closing level in well over three years.

The rally by treasuries reflected their appeal as a safe haven amid concerns about the spread of the coronavirus following a spike in the number of confirmed cases outside of China.

South Korea announced a total of 231 new coronavirus cases earlier today, leading the government to raise the coronavirus alert to its highest level.

A jump in confirmed coronavirus cases in Italy as well as new cases in Middle East countries like Iraq and Afghanistan also added to concerns about the outbreak escalating into a pandemic.

Coronavirus news is likely to remain in focus on Tuesday, potentially overshadowing reports on home prices and consumer confidence.

The Treasury Department is also due to announce the results of this month's auction of $40 billion worth of two-year notes.