U.S. government debt prices were lower on Monday as investors watched rising coronavirus cases and political developments.
The benchmark 10-year Treasury note yield rose to 0.66% while the yield on the 30-year Treasury note was also higher at 1.41%. Bond yields move inversely with prices.
Signs of a worsening pandemic continue to keep investors informed. The US officially recorded 200,000 deaths last week after the number of daily cases increased. According to Reuters, the number of tests positive for Covid-19 is over 25% in several Midwestern states as cases and hospital stays increase.
Investors continue to monitor political developments. The first presidential election debate between President Donald Trump and Democratic challenger Joe Biden is due to take place on Tuesday. The surge in coronavirus cases and deaths will certainly play a role, as will efforts by Republicans to replace the late Supreme Court Justice Ruth Bader Ginsburg with the conservative Amy Coney Barrett ahead of the November 3rd vote.
Meanwhile, House Speak Nancy Pelosi said on Sunday that a last-minute deal of coronavirus stimuli remains on the table. It comes as the House Democrats are trying to push ahead with a smaller aid package worth around $ 2.4 trillion.
In terms of economic data, the Dallas Federal Reserve Bank is expected to release September production numbers at 10:30 am [CET]. 3-month Treasury bills valued at $ 54 billion and 6-month bills valued at $ 51 billion are due to be auctioned on Monday.
– CNBC's Yun Li contributed to this report.