2020.01.2119:22:00UTC+00Treasuries Move Notably Higher Amid Concerns About Coronavirus Outbreak

Treasuries showed a significant move to the upside during the trading day on Tuesday as traders returned to their desks following the holiday on Monday.

Bond prices moved notably higher in morning trading and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 6.7 basis points to 1.769 percent.

With the drop on the day, the ten-year yield more than offset the increase seen over the two previous sessions, falling to its lowest closing level in over a month.

Treasuries benefited from their appeal as a safe haven amid concerns about the economic impact of a deadly coronavirus outbreak in China.

Chinese officials revealed the coronavirus outbreak has resulted in six deaths among nearly 300 confirmed cases, with the virus confirmed to be transmissible among humans.

Late in the trading day, the Centers for Disease Control and Prevention confirmed the first travel-related case of the coronavirus in the United States.

The CDC said the first case of coronavirus infection in the U.S. was diagnosed in the state of Washington in a patient who recently returned from Wuhan, China.

The strength among treasuries also came after the International Monetary Fund downwardly revised its forecast for global economic outlook due to bigger than expected slowdowns in emerging markets like India.

The IMF said it now expects 3.3 percent global growth in 2020 compared to its previous estimate for 3.4 percent growth. The organization also lowered its 2021 growth forecast to 3.4 percent from 3.6 percent.

News regarding the coronavirus outbreak could continue to attract attention on Wednesday, while traders are also likely to keep an eye on a report on existing home sales.