U.S. Long-Bond Yields Drop to Record Low on Virus Concerns
- Yields plunge as U.S. business activity shrinks in February
- Traders now pricing in a half-point of 2020 Fed rate cuts
Feb. 21: Pimco’s Crescenzi: Yields as Low as They Can Go Absent a Rate Cut
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The 30-year Treasury yield sank to an all-time low as a report showing U.S. business activity is contracting added to concern about the global economic fallout of the coronavirus epidemic.
Yields on the long bond fell as much as 8 basis points to about 1.88% on Friday as the outbreak accelerated outside China. The rate has fallen around half a percentage point in 2020 as investors with lengthy liabilities have snapped the debt up in a hunt for yield. And in a potential signal that recession fears are mounting, yield curves have reached the flattest levels this year.