Bond Traders Are Falling for Treasuries Again
After the worst quarter in decades, yields are falling to key levels that may be difficult to crack.
It’s “the little rally that could.”
Photographer: Lisa Lake/Getty Images
U.S. Treasuries aren’t exactly an asset class that people should want to root for. Sure, there are any number of bond bulls who see ultra-low yields as a permanent fixture of a world beset by aging demographics and rapid technological change. But hoping for a strong and inclusive global economy, which I’d like to think most everyone wants to see, suggests a selloff in government-debt markets practically by definition.
Still, after the worst quarterly rout for the $21.4 trillion Treasury market since 1980, it’s hard to resist getting at least somewhat excited about momentum swinging the other way. The question that seems to be on every trader’s mind: Just how long can this possibly last? After all, the U.S. is still well on its way toward the strongest year of economic growth in decades.