Greysteel Capital Markets Update | February 2020
At the end of January 2020, the benchmark 10-year Treasury yield decreased to 1.51%, after concerns about the economic impact of China’s coronavirus epidemic continued to rattle investors. White House economic adviser Larry Kudlow expects that China will delay purchases of U.S. goods promised under “Phase 1” of the trade pact as a result of the outbreak of the coronavirus, but the impact on the U.S. economy would be “minimal.” Treasury yields rose on Monday and Tuesday, after the Institute of Supply Management (ISM) released data showing an unexpected rebound in U.S. factory activity. The Manufacturing PMI jumped to 50.9 in January, up from 47.8 in December and beating forecasts of 48.5. The 10-year yield climbed to 1.60% in afternoon trading on Tuesday, February 4th.