U.S. Treasury yields fell on Tuesday morning, with the 10-year rate dipping to the 1.7% mark, extending a fall from the previous session amid Covid-19 variant fears.
The yield on the benchmark 10-year Treasury note was down about 1 basis point to 1.17% at 6 a.m. ET. The yield on the 30-year Treasury bond slipped slightly to 1.731%. Yields move inversely to prices and 1 basis point equals 0.01 percentage points.
The 10-year Treasury yield fell to a five-month low of 1.18% on Monday, as investors grew concerned about the spread of Covid variants, as well as the effect of inflationary pressures on the economic recovery.
Covid cases are rising in the U.S., with the spread of the delta variant, largely among the unvaccinated. The U.S. is averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago, according to CDC data.
On the economic data front, the number of building permits issued in June, as well as the number of new housing construction projects started last month, are set to be released at 8:30 a.m. ET on Tuesday.
An auction will be held on Tuesday for $35 billion worth of 42-day bills.