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Bonds Come Back in Vogue as a Hedge Against Cratering Stocks

  • Treasury yields tumble a second day as risk appetite falters
  • Traders cite clearer negative correlation in stocks and bonds
Updated on

Government bonds staged a sweeping rally on Thursday, with US Treasuries gaining momentum as a growing sense of angst over the health of the global economy pummels stock markets.

Treasuries gained for a second day as investors sought out the safest debt, driving the 10-year yield down 7 basis points to 2.81%, the lowest since late April. Weaker than forecast US jobless claims and a sharp decline in a regional Philadelphia Fed survey spurred a burst of buying in Treasuries that continued as equities extended their drop soon after the opening bell.