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Bond Traders Envision Road Map to 2% Yield on 10-Year Treasuries

  • Global bond rally puts focus on levels last seen in 2016
  • Trade tensions, weak data cited as potential tipping points
Trading On The Floor Of The NYSE As U.S. Markets Stuck In A Rut As Jobs Data Keep Traders Guessing
Photographer: Michael Nagle/Bloomberg
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A relentless global bond rally has Treasury investors pondering what it will take to send benchmark 10-year yields below 2% for the first time since 2016.

Rates on 10-year Treasuries dipped lower again on Thursday, after touching about 2.21% the day before -- almost 50 basis points below where they started the year -- amid U.S.-China trade tension and concern over the outlook for the world economy. The flight to safety saw the spread between 3-month and 10-year yields dive to its most inverted level since 2007, as the bond market’s recession signal intensified.