If coronavirus fears escalate, Wells Fargo warns 10-year Treasury yields could fall another 30%

Wells Fargo Securities’ Michael Schumacher expects the bond rush to intensify.

According to the firm’s global head of rate strategy, coronavirus fears will drive more investors into the U.S. Treasury market as a safe haven play and drive yields sharply lower.

The benchmark 10-year Treasury Note yield is already down 22% so far this year.

“Our big concern is that investors get more and more nervous,” Schumacher told CNBC’s “Trading Nation” on Friday. “We would say that probably the last 25 to 30 basis points mainly in the 10-year is largely due to the virus.”
Read more: CNBC.