Bond Traders Settle In for a Calm Summer

  • Benchmark bond yields have turned lower after recent spike
  • Investors ready for this week’s key U.S. inflation report
Pimco Says It's Too Early to Tell If Inflation Is Transitory
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Global bond traders appear to be readying for a slow summer regardless of how this week’s key U.S. inflation data comes in.

The yield on 10-year U.S. Treasuries has fallen to as low as 1.50%, while those in Germany are at the most negative in a month. And a gauge of expected volatility in interest rates has dropped to its lowest since March, as markets show a willingness to look through short-term releases.