Business

The 10-year Treasury yield just dropped below 1% for the first time in history

Posted March 3, 2020 2:00 p.m. EST

— The 10-year Treasury bond yield dropped below 1% for the first time in history on Tuesday, as investors grew increasingly worried about the novel coronavirus outbreak.

US government bond yields have been trending lower since the start of the year, but their fall accelerated as US financial markets reacted strongly over the past couple weeks to the global outbreak.

Exacerbating those fears, the Federal Reserve delivered an unscheduled half-percentage point interest rate cut on Tuesday to boost the economy in the face of coronavirus. It was its first emergency cut, and the first cut of that size, since 2008. Investors don't believe it will have been its last.

The Dow plunged more than 750 points.

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