Economics
Treasuries Surge as Investors Seek Refuge, Fed Rate Path Doubted
- U.S. government bonds gain 1.6% in 2016 amid global stock rout
- Traders curb wagers on inflation as oil price plunges
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A dimming outlook for inflation and global economic growth pulled Treasury yields lower for a second week amid a stock-market rout and plunging oil prices, as traders push back the anticipated timing for Federal Reserve interest-rate increases.
Benchmark 10-year yields dipped below 2 percent Friday for the first time since October while yields on 30-year bonds, the maturity most sensitive to inflation, closed at the lowest since August. The yield on the two-year note, which is most influenced by Fed policy expectations, fell for a 12th straight trading day.