coronavirus

Treasury Yields Edge Higher as Omicron Variant Fears Ease

Source: NYSE

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U.S. Treasury yields were higher Tuesday, as concerns eased slightly around the omicron Covid variant.

The yield on the benchmark 10-year Treasury note rose 4 basis points to 1.48%. The yield on the 30-year Treasury bond also added 4 basis points, climbing to 1.806%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Investors are keeping an eye on further developments around the omicron variant. White House Chief Medical Advisor Dr. Anthony Fauci said Sunday that the initial data on the variant is "encouraging," though he cautioned that more information is needed.

In addition, investors are also monitoring the Federal Reserve's plans to tighten monetary policy.

Comments by Fed officials suggest the central bank is likely to decide to double the pace of its taper to $30 billion a month at its December meeting next week. Initial discussions could also begin as soon as the December meeting about when to raise interest rates and by how much next year.

U.S. third-quarter productivity fell 5.2% in the third quarter for its biggest quarterly drop since 1960, the Labor Department report Tuesday. That was compared to the Dow Jones estimate of a 5% drop.

CNBC's Yun Li contributed to this market report.

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