Bond Market Eyeing Record-Low Yields Set for Nudge From the Fed
- Central bank is seen signaling it’s ‘all in’ with virus raging
- Ten-year Treasury yields have never posted lower weekly close
Source: Bloomberg
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Treasuries traders are once again eyeing record low yields, with dimming hopes for a sharp U.S. growth recovery fueling expectations that the Federal Reserve is about to signal more accommodation ahead.
The benchmark 10-year yield just posted its lowest-ever weekly close, at 0.59%. And after stripping out inflation, the real yield -- one of the market’s purest reads on the economy -- has almost never finished a trading day lower than Friday’s minus 0.91%.