August 9, 2014

THE SAFE HARBOR:

Yields on 10-Year Treasuries Fall, Confounding the Experts (JEFF SOMMER,  AUGUST 8, 2014, NY Times)

The 10-year Treasury note fell as low as 2.35 percent, its nadir since June 20, 2013, before settling at 2.42 percent, according to Bloomberg.

Yields have been falling with embarrassing consistency in 2014 despite forecasts to the contrary from most Wall Street analysts at the beginning of the year.

"Just about all of us were convinced that yields were rising," Kathy A. Jones, a fixed-income strategist at Schwab, said in a phone interview this week. "But the bond market didn't go along with that story." [...]

[I]nvestors worldwide have been curbing the risk in their portfolios and moving money into safer holdings. United States Treasuries remain high on the list of global safe havens. Demand for Treasuries has driven prices higher and pushed down yields.
Posted by at August 9, 2014 7:59 AM
  
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