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Bond Yields Around the World Are Tumbling to New Lows

  • Poor European manufacturing data drags bund yields below zero
  • Ten-year U.S. Treasury yield drops below three-month rate
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Krishna Guha, head of central bank strategy at Evercore ISI, says don’t panic about the inverted yield curve.Markets: European Close." (Source: Bloomberg)
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Investors cramming into government bonds are sending yields around the world to multi-year lows as they dash for protection from dimming growth and seek to benefit from more accommodative central banks.

New Yorkers were still wrapping up the previous day’s business when the first of Friday’s milestones was reached, as yields on New Zealand’s bonds tumbled to a record. Japanese markets swiftly followed, with the 10-year yield sinking to a two-year low of minus 0.08%. Another wretched batch of European data drove German rates below zero for the first time since 2016 before disappointing U.S. PMIs delivered the sucker punch, pushing the yield on 10-year Treasuries below the three-month bill rate.