Bond Investors' Dash for Safety Tramples Cushion Against Shock
- Term premium approaches 45-year low as yields plummet
- Three-month, 10-year yield gap touches smallest since 2012
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Investors have seldom been gloomier about prospects for the global economy, judging by this week’s Treasury-market performance.
As worries about European banks’ credit pushed global stocks into a bear market, demand for U.S. debt heated up, driving benchmark 10-year yields toward record lows.