Treasury yields bounced off their lows and traded near the flat line on Friday after Gilead said its antiviral drug remdesivir reduces mortality risk, raising hopes for a coronavirus treatment.
The yield on the benchmark 10-year Treasury note were about little changed at 0.599% after hitting its lowest level since April 22 earlier in the session. The yield on the 30-year Treasury bond dipped about 2 basis points to 1.283%. Yields move inversely to prices.
Yields came off their lows after Gilead said Friday that its antiviral drug remdesivir, a coronavirus treatment candidate, showed an improvement in clinical recovery and a 62% reduction in the risk of mortality compared with standard of care.
The coronavirus outbreak across the U.S. continues to grow with the country reporting another record single-day spike of more than 63,200 new cases on Thursday, according to data collected by Johns Hopkins University. In the latest, Nevada is rolling back some of its reopening, shutting down bars in certain counties with growing outbreaks.
“The rising case count in the sunbelt combined with solid receptions to the 10- and 30-year auctions have been credited for the bulk of the bid,” Ian Lyngan, BMO’s head of U.S. rates, said in a note on Friday. “The daily Covid-19 stats will presumably contribute to the overall direction of US rates and the backdrop of bullish momentum has already set the tone.”
The benchmark 10-year yield has fallen about 10 basis points this week alone. The rate traded lower on Thursday even as a larger-than-expected fall in initial jobless claims showed a progress in economic recovery amid the pandemic.
There are no Treasury auctions scheduled Friday.
—CNBC’s Silvia Amaro contributed reporting.