By Geoffrey Smith
Investing.com -- U.S. Treasury bond yields continued their headlong plunge on Friday, with the 10-year benchmark yield falling below 0.7% for the first time ever.
That’s a drop of over 20 basis points just in the course of the European morning, on a day when a fresh wave of selling hit global risk assets.
The move came as Russia and OPEC argued over whether or not to implement a 1.5 million barrel-a-day cut in oil output to rebalance a market hit by collapsing demand. Further declines in the price of crude oil cut add a further disinflationary shock to a world economy that is already slowing as a result of the coronavirus outbreak.
By 5 AM ET (1000 AM ET), the 10-year Treasury yield had bounced back to 0.74%, while the 10-year German yield was at -0.73%, only 1 basis point off a new low that it hit earlier.