Treasury yields fall as coronavirus fears linger

The yield on the benchmark 10-year Treasury note, which moves inversely to price, fell five basis points to around 1.5144%, while the yield on the 30-year Treasury bond was lower at around 1.9623%.

Yields remained lower after data out Thursday showed weekly jobless claims were in line with expectations at 210,000. The Philadelphia Fed business index also surged to 36.7 in February from 17 in January.

China’s National Health Commission reported Thursday that 74,576 cases of the coronavirus had been confirmed, with 2,118 deaths on the mainland.

The latest meeting minutes from the Federal Reserve revealed officials at the U.S. central bank had identified the coronavirus as a “new risk to global growth.”

Central bank policymakers also warned that if the coronavirus continued to spread, it could hit what appeared to be an improving growth picture in China.

Federal Reserve Vice Chairman Richard Clarida said Thursday Fed officials are monitoring risks, in particular the coronavirus, and he added there’s no indication at this point that it will impact policy.

Clarida also said he doesn’t think there’s a high level of expectation for a rate cut.

The U.S. Treasury is set to auction $50 billion in four-week bills, $45 billion in eight-week bills and $8 billion in Treasury Inflation-Protected Securities (TIPS) on Thursday.