Treasuries Extend Recent Rally, Pushing Ten-Year Yield To New Record Low

(RTTNews) - Treasuries moved sharply higher during trading on Monday, extending the substantial rally seen over the past several sessions.

Bond prices gave back some ground after an early move to the upside but remained firmly positive. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, plunged by 20.7 basis points to 0.499 percent.

The ten-year yield closed lower for the thirteenth consecutive session, ending the day at a new record closing low.

The jump by treasuries came as traders continued to look for safe havens amid lingering concerns about the economic impact of the coronavirus outbreak and a steep drop by the price of crude oil.

The price of crude oil for April delivery plummeted $10.15 to $31.13 a barrel amid indications of a price war between Saudi Arabia and Russia.

Saudi Arabia announced a massive cut to its official selling prices for April and reportedly plans to increase oil production.

The move by Saudi Arabia comes after OPEC and its allies failed to reach an agreement on additional production cuts last week.

Treasuries also benefited from substantial weakness on Wall Street, with an initial sell-off by stocks triggering a key market circuit breaker that halted trading for fifteen minutes shortly after the open.

On Tuesday, the Treasury Department is scheduled to announce the results of this month's auction of $38 billion worth of three-year notes.