Misfired Fed ‘Bazooka’ Opens Doors to Global Bond Yield Slide
- Record lows touched on 10-year Treasury, gilt yields this week
- Traders Speculate BOE could follow Fed with emergency cut
Jerome Powell exits after speaking during a news conference in Washington, D.C. on March 3.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
There’s no bottom in sight for Treasury yields after the Federal Reserve’s aggressive rate cut failed to quell fears that the coronavirus is wrecking the global economy.
Before Tuesday, the 10-year note had never yielded less than 1%. Once that historic level was breached, less than 30 minutes later the rate was threatening 0.90% -- or half the amount it yielded at the end of 2019. Such is the new normal in the world’s benchmark bond market, where anxiety has taken hold to a degree last seen during the 2008 financial crisis.