U.S. Treasury yields jumped on Monday following news that a coronavirus vaccine developed by Pfizer and BioNTech is proven to be 90% effective in a study.
The yield on the benchmark 10-year Treasury note jumped 10 basis points to 0.915%, its highest level since June. The yield on the 30-year Treasury bond climbed 11 basis points to 1.713%. Yields move inversely to prices.
The jump in yields came after U.S. pharmaceutical giant Pfizer and German biotech firm BioNTech announced Monday their coronavirus vaccine was more than 90% effective in preventing Covid-19 among those without evidence of prior infection.
Scientists are hoping for a coronavirus vaccine that is at least 75% effective, while White House coronavirus advisor Dr. Anthony Fauci has previously said one that is 50% or 60% effective would be acceptable.
The news came as cases of the coronavirus continue to surge in the U.S., with daily infections reaching 128,412 on Saturday, according to data compiled by Johns Hopkins University.
Democrat Joe Biden defeated incumbent Republican President Donald Trump in the U.S. presidential election race, according to NBC News projections.
President-elect Biden secured victory on Saturday following projected wins in the key states of Pennsylvania and Nevada, according to NBC News projections. The call came four days after Election Day and amid close counts in several battleground states.
Trump is refusing to concede the election. “The simple fact is this election is far from over,” Trump said in a statement released just minutes after NBC projected that Biden had become president-elect.
Loretta J.Mester, president of the Federal Reserve bank of Cleveland, is due to make a speech at 15:30 p.m. ET and Philadephia Fed President Patrick Harker is set to speak at 16:20 p.m. ET.
Auctions will be held on Monday for $54 billion worth of 13-week bills, $51 billion of 26-week bills and $54 billion of three-year notes.
— CNBC’s Kevin Breuninger contributed to this story.
