US Treasury bond yields fell Tuesday morning, with the 10-year rate dropping to the 1.7% mark, extending a decline from the previous session amid Covid-19 variant fears.
The ten-year benchmark bond yield declined 1 basis point to 1.17% at 6 a.m. ET. The yield on the 30-year government bond fell slightly to 1.731%. The returns move inversely to the prices and 1 basis point corresponds to 0.01 percentage points.
The yield on 10-year government bonds fell to a five-month low of 1.18% on Monday as investors were concerned about the spread of variants of Covid and the impact of inflationary pressures on the economic recovery.
Covid cases are increasing in the US, with the delta variant spreading largely among the unvaccinated. According to CDC data, there are an average of about 26,000 daily cases in the US for the past seven days, more than double the average from a month ago.
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On the front line of economic data, the number of building permits issued in June, as well as the number of new home construction projects commenced last month, will be released on Tuesday at 8:30 a.m. ET.
On Tuesday there will be an auction for 42-day bills valued at $ 35 billion.
