Treasury yields climbed on Monday as investors digested an agreement between OPEC and its allies for record oil production cuts.
OPEC and its oil producing allies on Sunday agreed a historic deal to cut production by 9.7 million barrels per day, after days of protracted negotiations in a bid to prop up falling prices as the coronavirus outbreak continues to hammer demand.
The agreement also signals the end to an oil price war between OPEC kingpin Saudi Arabia and non-OPEC leader Russia, which had sent prices 40% lower since early March.
The coronavirus pandemic and subsequent stimulus measures from the government and the U.S. Federal Reserve also remain in focus.
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, voiced cautious optimism on Sunday that the outbreak is “starting to level off” in some areas.
As of Monday morning, the U.S. has more than 557,000 confirmed cases and more than 22,000 deaths, according to Johns Hopkins University.
There is no major economic data due out of the U.S. Monday, but auctions will be held Monday for $57 billion of 3-month Treasury bills and $48 billion of 6-month bills.