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US Treasury Yields Fall, Yield Curve Flattens on Virus Fears

(Improve with afternoon operations)

By Gertrude Chavez-Dreyfuss

NEW YORK, Jan 25 (.) – Lengthy-term U.S. Treasury yields fell to a three-week low on Monday, on decrease urge for food for threat amid lingering fears of rising instances. of coronavirus and weak financial development.

* Merck & Co stated Monday it could halt growth of its two COVID-19 vaccines and focus pandemic analysis on therapies, with preliminary information on an experimental oral antiviral anticipated by the tip of March.

* That information, together with doubts about whether or not the president of the US, Joe Biden, will see his stimulus package deal of 1.9 trillion {dollars} accepted to assist the financial system from the ravages of the pandemic additionally weighed on yields. Returns on the 10-, 20- and 30-year notes fell to three-week lows.

* The yield curve flattened, in step with the drop in yields on longer-term bonds, with the hole between US 2- and 10-year bonds falling to 90.70 foundation factors, its lowest stage in three weeks.

* Tom di Galoma, Managing Director of Seaport International in New York, stated market motion widened after Merck pulled out of its COVID vaccine plan.

* In afternoon buying and selling, the benchmark 10-year yield fell to 1.03% from 1.091% on Friday. Monday’s stage was the bottom since January 6.

* 30-year returns fell to 1,791% from 1,856% on Friday, after hitting a three-week low of 1,789%.

* The Treasury auctioned $ 60 billion in two-year debt on Monday, at a most charge of 0.125% that was under the pre-issuance stage, whereas the provide protection ratio – a measure of demand – was It was at a strong 2.67 versus the two.52 common.

* Buyers are additionally on the lookout for this week’s financial coverage assembly from the Federal Reserve from which, nevertheless, no additional bulletins are anticipated.

(Report by Gertrude Chavez-Dreyfuss, Edited in Spanish by Manuel Farías)

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