On Monday United States government debt prices were higher as concerns over a second wave of coronavirus infections intensified following spikes across the country. The yield on the benchmark 10-year Treasury note was down at 0.6609% and the yield on the 30-year bond fell to 1.3987%. Yields move inversely to prices.
A number of states including Alabama, California, Florida and North Carolina have experienced a rise in Covid-19 cases since they began to reopen their economies. Texas and North Carolina reported record numbers of coronavirus-related hospitalizations on Saturday.
President Donald Trump is planning to push ahead with an indoor campaign rally in Tulsa, Oklahoma on Saturday despite local concern over an uptick in cases. Risk assets worldwide are starting the week on the backfoot after a significant pullback last week, fueled by rising fears over a second wave and profit-taking following a recent surge in stock prices.
China, the original epicenter of the pandemic, is also subject to concern about a second wave, after Reuters reported that a district of Beijing is in a “wartime emergency” due to the discovery of a new cluster of infections centered around a wholesale market.