US 10-year yield falls below 1% for first time
Move comes after Federal Reserve delivered emergency rate cut
The 10-year US Treasury yield dropped below one per cent for the first time on Tuesday, after the Federal Reserve delivered its first emergency rate cut since the financial crisis in order to stave off the long-term economic impact from the spread of the coronavirus.
The yield, which moves inversely to price, on the 10-year Treasury dropped to a fresh all-time low of 0.999 per cent in afternoon trading in New York. The 10-year Treasury is one of the most important interest rates in global finance, underpinning borrowing and savings rates across the globe.
Other benchmark US government bond yields were also in freefall on Tuesday. The two-year yield dropped almost over 20 basis points to 0.69 per cent.
The moves lower came after the US central bank cut its main policy rate by half a percentage point in a bid to support financial markets, following a more than 10 per cent drop in the S&P 500 since coronavirus concerns intensified at the beginning of last week.
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