Treasury yields fall amid fresh concerns about COVID-19 variant

US Treasury yields fell sharply on Friday morning, amid concerns about a new type of coronavirus found in South Africa.

return on standard 10-year treasury bonds It was down more than 11 basis points to 1.5277% at 4 AM ET. return on 30 year treasury bonds It fell 9 basis points to 1.8791%. Returns move inversely with prices and one basis point is 0.01%.

Yields fell on Friday, as the investor fled to the safe haven of bonds with Stock market futures are also dropping.

Overnight, fears of a new type of Covid found in South Africa began to rise, with a vision of UK suspends flights from six African countries. More than 30 mutations have been discovered in the new variant, raising concern that it could better avoid antibody protection caused by previous vaccines and infections.

The 10-year Treasury yield surged earlier in the week, reaching 1.68% as investors digested the news that Jerome Powell had been renamed Federal Reserve Chair.

Yields slumped after that, though minutes from the Fed’s latest policy meeting showed that central bank officials would be willing to raise interest rates sooner than expected in the event inflation rises too high.

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Jeffrey Yu, chief market analyst at BNY Mellon, told CNBC:Squawk Box EuropeOn Friday, some market corners may believe that news of this new alternative will give the Federal Reserve a reason to pause monetary policy normalization, although they do not necessarily agree with this view.

Yu said that the The recent resurgence of Covid cases in EuropeEven before news of this latest alternative emerged, he showed that “we’ve been dealing with this for some time, and there will be rounds of risk aversion that will hit the markets, due to pandemic fears.”

while, Weekly unemployment claims in the US Wednesday’s release came at a 52-year low. The latest personal consumption expenditures index, the Fed’s preferred inflation measure, rose 4.1% year-on-year in October, matching expectations.

The bond market was closed Thursday for Thanksgiving and no economic data or Treasury auctions scheduled for Friday, with markets closed early for the weekend.

CNBC’s Jesse Pound contributed to this market report.

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