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Coronavirus

Coronavirus shock weighs on global bond yields

Emerging-market rate cuts drive flight to safety in Treasurys

Lower rates in developing countries have pushed investor capital to the U.S.     © Reuters

TOKYO/SHANGHAI -- Sovereign bond yields are falling worldwide as investors and governments fret about the risks posed by the coronavirus outbreak to the global economy.

Several emerging markets lowered policy rates this month as the virus spread. Thailand, Indonesia and Brazil are among the 12 countries that have implemented cuts so far, and long-term bond yields in Thailand are close to falling below 1% for the first time. These countries -- which have particularly close economic ties to China through tourism and resource exports, for example -- are especially exposed to the impact of the outbreak.

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