US 10-year yield recovers from record low

• The US 10-year yield is regaining poise, tracking the uptick in the US equity index futures. 
• The benchmark yield hit a record low of 1.32% on Tuesday. 

The yield on the US 10-year treasury note has recovered from lifetime lows reached Tuesday, possibly tracking the uptick in the US equity index futures. 

At press time, the yield is trading at 1.37%, representing a five basis point gain on the record low of 1.32%. Meanwhile, the futures on the S&P 500 are reporting a 0.60% gain. 

Stocks fell sharply on Tuesday with the Dow Jones Industrial Average falling by nearly 900 points on reports the coronavirus was spreading outside China. The resulting flight to safety put a haven bid under treasuries, pushing yields lower. 

The yield on the 10-year note also slipped to a three-year low of 1.184% before regaining some poise in Asia. Currently, the short duration yield is seen at 1.214%. 

Both the 10- and two-year yields could continue to rise if the uptick in the S&P 500 futures causes risk reset in the Asian and European markets. So far, the Asian equities have failed to pick up a bid. Major Asian indices like Japan's Nikkei, South Korea's Kospi and Hong Kong's Hang Seng are flashing red. The Shanghai Composite, however, is reporting a 0.30% gain.