coronavirus

Treasury Yields Rise as Investors Monitor Developments With Omicron Covid Variant

Source: NYSE

Traders at the New York Stock Exchange.

U.S. Treasury yields climbed on Monday, as investors kept an eye on the latest developments with the Covid omicron variant.

The yield on the benchmark 10-year Treasury note rose by 3.1 basis points to 1.516% at around 4:00 p.m. ET. The yield on the 30-year Treasury bond climbed by 3.3 basis points to 1.863%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Treasury yields slid on Friday, as investors searched for safe-haven assets, amid fears around the newly discovered Covid variant. The World Health Organization labeled the new omicron strain of Covid a "variant of concern" on Friday.

While scientists continue to research the variant, omicron's large number of mutations has raised alarm. Preliminary evidence suggests the strain has an increased risk of reinfection, according to the WHO.

The variant was first reported to the WHO from South Africa and has been found in the U.K., Israel, Belgiumthe NetherlandsGermany, Italy, Australia and Hong Kong, but not yet in the U.S. Many countries, including the U.S., moved to restrict travel from southern Africa.

President Joe Biden quelled fears on Monday when he said lockdowns are no yet on the table due to omicron.

"If people are vaccinated and wear their masks, there's no need for lockdowns," Biden said at a press conference Monday. Biden also said there would be no new travel restrictions.

Looking ahead to data releases due out later in the week, investors will be monitoring the November nonfarm payroll report, set to be published on Friday. Jobs and inflation data are both being used by the Fed to determine its timeline on normalizing monetary policy.

Fed Governor Michelle Bowman is scheduled to give a speech on central banks and indigenous communities at the Virtual Symposium on Indigenous Economies, at 5:05 p.m. ET.

Auctions are slated to be held on Monday for $57 billion of 13-week bills and $51 billion of 26-week bills.

CNBC's Hannah Miao contributed to this market report.

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