Distributors work on the floor at the New York Stock Exchange.
Brendan McDermid | Reuters
The yield on the 30-year Treasury bond omitted to a record low in the morning of Asian trading hours on Thursday, breaching the 2% level for its first time, according to Reuters.
That came fitting a day after the 30-year Treasury bond touched record lows on Wednesday, amid market fears after the closely watched succumbs on the 10-year Treasury note and the 2-year inverted.
After dipping to levels below 2%, the yield on the 30-year Bank bond was last at 1.987%. Still, that was higher than the yields on 30-year bonds elsewhere globally. The give in on the 30-year Japanese government bond was at 0.155%, while the rate of the 30-year German bund was at -0.201%.
“Rates are very low by latest standards, but it still makes sense to have some exposure in US Treasuries given the highly uncertain outlook. As well, USD rates remain attractive compared to developed market peers,” strategists at Singapore’s DBS Bank wrote in a Thursday note.
“Investors should also merit in mind that the bond market rally looks stretched. An overweight duration stance is vulnerable to any good scuttlebutt that has been sorely lacking in recent months,” the strategists said.
Commenting on the recent main yield curve inversion in the U.S., prehistoric Federal Reserve Chair Janet Yellen said Wednesday that “it may be a less good signal ” this many times around.
“The reason for that is there are a number of factors other than market expectations about the future walk of interest rates that are pushing down long-term yields,” Yellen said on Fox Business Network.
Long-term give overs have swooned this month as worries about U.S.-China trade developments and GDP growth — coupled with expectations for lackluster inflation and assorted aggressive central bank action — have sent traders in search of safer investments.