February 28, 2020 / 8:49 AM / a month ago

TREASURIES-U.S. 2-year Treasury yields drop below 1% for first time since 2016

LONDON, Feb 28 (Reuters) - Yields on two-year and five-year U.S. government bonds, or Treasuries, slid below 1% on Friday for the first time since 2016 in a further sign that investors are bracing for the economy to take a hit from the spread of coronavirus.

The two-year Treasury yield fell to 0.986%, its lowest level since late 2016 and was last down 11 basis points on the day.

Five-year U.S. Treasury yields also fell more than 10 bps to 0.99%, hitting their lowest levels since July 2016.

Earlier 10-year Treasury yield fell to fresh record lows .

Money markets have now moved to price around three 25 basis point rate cuts from the U.S. Federal Reserve in the next 12 months. (Reporting by Dhara Ranasinghe; editing by Sujata Rao)

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