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Global Bond Yield Plunges to Record-Low 1.3% in Warning Sign

  • Bonds gain 3.6% in 2016 while stocks drop 1.5% after dividends
  • `The U.S. cannot pull up the world economy': Sumitomo
Pedestrians are reflected in an electronic board displaying the closing price of the Nikkei 225 Stock Average outside a securities firm in Tokyo, Japan, on Tuesday, Feb. 9, 2016.
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Global bond yields fell to a record, a warning sign for the worldwide economy.

The yield on the Bank of America Corp. Global Broad Market Index plunged to 1.3 percent, the lowest in almost 20 years of data. Bonds in the gauge have returned 3.6 percent in 2016, while the MSCI All Country World Index of shares has slumped 1.5 percent, including reinvested dividends. Treasuries declined, with 10-year yields climbing for the first time in three days, before minutes of the Federal Reserve’s March meeting are published.