T-note

On Wall Street, the yield on this heavily traded United States government bond — often called the T-note — is a closely watched gauge of sentiment in financial markets.

Generally speaking, when yields on the T-note rise, it means expectations for economic growth and inflation are rising.

Early this month, the yield on the T-note fell below 1.20 percent, reaching as low as 1.13 percent, the lowest since early February.

And as renewed worries about Covid-19 overtook fears of runaway inflation, the return on the T-note tumbled, too.

Dan Ivascyn, group chief investment officer at PIMCO, a giant manager of bond funds, said the drop in the T-note yield partly reflected investors’ pessimism about a recovery, even after the historic stimulus efforts.