Brian Chappatta, Columnist

Bond Traders Start Panic Buying in New Yield Order

After a decline of 100 basis points, there’s little doubt that yields will be lower for a lot longer.

May 29, 2019 at 9:00 AM UTC

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

Low interest rates support stock valuations and give businesses the chance to borrow on the cheap. — Low interest rates support stock valuations and give businesses the chance to borrow on the cheap.
Photographer: Michael Nagle/Bloomberg

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Why are U.S. Treasury yields so low?

This is probably the single most pressing question facing Wall Street after the benchmark 10-year yield touched 2.26% on Tuesday, down about 100 basis points from October. Because of that rally, a key portion of the U.S. curve inverted further. Yes, there’s a U.S.-China trade war going on. But those levels still boggle the mind when considering the S&P 500 Index remains close to a record, the Federal Reserve has said it’ll be patient with interest rates and Americans feel as good about current economic conditions as they have in 18 years.