Yields higher as traders monitor coronavirus, politics

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U.S. government debt prices were lower on Monday as investors monitored rising coronavirus cases and political developments.

The yield on the benchmark 10-year Treasury note rose to 0.66%, while the yield on the 30-year Treasury bond was also higher at 1.41%. Bond yields move inversely to prices.

Signs of a worsening pandemic continue to keep investors on edge. The U.S. officially passed 200,000 deaths last week following a rise in new daily cases. According to Reuters, the number of tests coming back positive for Covid-19 is topping 25% in several Midwest states as cases and hospitalizations surge.

Investors continue to monitor political developments, with the first presidential election debate between President Donald Trump and Democratic challenger Joe Biden set to take place on Tuesday. The rise in coronavirus cases and deaths is sure to play a role, as well as Republican efforts to replace late Supreme Court Justice Ruth Bader Ginsburg with conservative Amy Coney Barrett before the Nov. 3 vote.

Meanwhile, House Speak Nancy Pelosi said Sunday that a last-minute coronavirus stimulus deal remains on the table. It comes as House Democrats try to forge ahead with a smaller aid package costing around $2.4 trillion.

In terms of economic data, the Federal Reserve Bank of Dallas is expected to release manufacturing numbers for September at 10:30 a.m. ET. Meanwhile, in auctions, $54 billion in 3-month Treasury bills and $51 billion in 6-month bills are set to be auctioned Monday.

– CNBC’s Yun Li contributed to this report.

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