Treasuries Rally Reflects Visions of a Rockier Path to Recovery
- Benchmark yields touch new lows as covid-19 infections climb
- Inflation data unlikely to lift morale as growth worries mount
Treatment of a patient in the Covid-19 ICU at the United Memorial Medical Center in Houston, Texas, on June 29.
Photographer: Go Nakamura/BloombergThis article is for subscribers only.
The grim tallies of new coronavirus cases have given investors a glimpse of a bleaker world in the second half of the year, and a reminder of the haven appeal of government bonds.
Investors rushed into the safest assets as news on the pandemic worsened during the past week. The fiercest moves have dissipated, but not before long-dated yields in the U.S. had touched multi-month lows, crushing the curve flatter. The five-year rate fell to a new record below 0.26%, as did both the two- and five-year maturities in the U.K.