(Kitco News) The 10-year Treasury yield dropping below 1% for the first time means that the market thinks the Federal Reserve might not be done easing after an emergency 50 basis point cut, according to analysts.
The yield on the benchmark 10-year Treasury note dropped to an all-time low of 0.927% on Tuesday. The 30-year Treasury bond yield also hit a record low of 1.601%.
The move came after the Federal Reserve came out with a surprise rate cut to combat the economic fallout from the spread of the coronavirus outbreak.
“The coronavirus poses evolving risks to economic activity,” the Fed said in a statement. “In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate.”