WASHINGTON, March 3 (Xinhua) -- The 10-year U.S. Treasury yield on Tuesday fell below 1 percent for the first time after the Federal Reserve delivered its first emergency rate cut since the 2008 financial crisis to mitigate the economic impact from the ongoing COVID-19 outbreak.
The yield on the benchmark 10-year Treasury note fell more than 11 basis points to an all-time low of 0.927 percent in afternoon trading, while the yield on the 30-year Treasury bond was at a record low of 1.601 percent, according to CNBC.
Investors have fled stocks and rushed into bonds for safety after the Fed decided earlier Tuesday to lower the target range for the federal funds rate by 50 basis points to 1-1.25 percent, as the COVID-19 outbreak poses "evolving risks" to economic activity.
"The magnitude and persistence of the overall effects on the economy, however, remain highly uncertain, and the situation remains a fluid one," Fed Chairman Jerome Powell said Tuesday at a press conference.
"Against this background, the (Federal Open Market) Committee judged that the risks to the U.S. outlook have changed materially," he said, adding the Fed's policy-making committee has eased the stance of monetary policy to provide some more support to the economy.
"#Markets not reacting favorably to #Fed emergency #rate cut... Gradual realization that real #coronavirus impact is yet to come," Gregory Daco, chief U.S. economist at Oxford Economics, tweeted Tuesday, noting "coordinated fiscal action" is needed to combat the economic effects of the spreading coronavirus.
Earlier in the day, finance ministers and central bank governors of the Group of Seven (G7) industrialized nations said in a joint statement issued after a conference call that they will "use all appropriate policy tools" in the efforts to mitigate the economic impact from the ongoing COVID-19 outbreak.
"That is a statement of general support," said Powell. "And I think it's up to individual countries, individual fiscal policies and individual central banks to do what they are going to do."
The yield on the benchmark 10-year Treasury note fell more than 11 basis points to an all-time low of 0.927 percent in afternoon trading, while the yield on the 30-year Treasury bond was at a record low of 1.601 percent, according to CNBC.
Investors have fled stocks and rushed into bonds for safety after the Fed decided earlier Tuesday to lower the target range for the federal funds rate by 50 basis points to 1-1.25 percent, as the COVID-19 outbreak poses "evolving risks" to economic activity.
"The magnitude and persistence of the overall effects on the economy, however, remain highly uncertain, and the situation remains a fluid one," Fed Chairman Jerome Powell said Tuesday at a press conference.
"Against this background, the (Federal Open Market) Committee judged that the risks to the U.S. outlook have changed materially," he said, adding the Fed's policy-making committee has eased the stance of monetary policy to provide some more support to the economy.
"#Markets not reacting favorably to #Fed emergency #rate cut... Gradual realization that real #coronavirus impact is yet to come," Gregory Daco, chief U.S. economist at Oxford Economics, tweeted Tuesday, noting "coordinated fiscal action" is needed to combat the economic effects of the spreading coronavirus.
Earlier in the day, finance ministers and central bank governors of the Group of Seven (G7) industrialized nations said in a joint statement issued after a conference call that they will "use all appropriate policy tools" in the efforts to mitigate the economic impact from the ongoing COVID-19 outbreak.
"That is a statement of general support," said Powell. "And I think it's up to individual countries, individual fiscal policies and individual central banks to do what they are going to do."
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