Covid-19 Variant Upends Investor Bets on Rate Increases
Covid-19 Variant Upends Investor Bets on Rate Increases
 
Bond yields slide and investors quickly adjust how swiftly they expect the Fed to raise interest rates
Investors piled into government bonds and quickly recalibrated their expectations for interest-rate increases in response to the new Covid-19 variant first identified in South Africa.
 
The yield on the 10-year U.S. Treasury note dropped to 1.484% Friday, according to Tradeweb, from 1.644% at Wednesday’s close. That marks the largest trading-session decline since March 2020, at the start of the coronavirus pandemic. Yields fall as bond prices rise.