Bond Won't Be Spoiling the Party in US Trading Today

Tuesday, March 8, 2023

Bond Takes a Dive

US Treasury yields fell on Tuesday, with the 10-year yield dropping to its lowest level in more than a month. The yield on the 30-year Treasury bond also fell, to its lowest level since October. The decline in yields comes as investors seek out safe-haven assets amid concerns about the global economy.

The yield on the 10-year Treasury note fell to 3.65% on Tuesday, its lowest level since January 18. The yield on the 30-year Treasury bond fell to 3.92%, its lowest level since October 25.

The decline in yields comes as investors seek out safe-haven assets amid concerns about the global economy. The war in Ukraine, rising inflation, and the Federal Reserve's plans to raise interest rates have all contributed to uncertainty in the markets.

"Investors are looking for safety and security, and they're finding that in Treasuries," said Jim Barnes, a portfolio manager at Bryn Mawr Trust. "The yield on the 10-year Treasury note is now below the yield on the 2-year Treasury note, which is a sign that investors are expecting the economy to slow down."

The decline in yields is also a sign that investors are becoming more pessimistic about the outlook for the economy. The yield on the 10-year Treasury note is often seen as a barometer of investors' expectations for economic growth. The lower the yield, the more pessimistic investors are about the future.

"The decline in yields is a sign that investors are becoming more concerned about the economy," said Michael Gapen, an economist at Barclays. "The market is starting to price in a recession."

The decline in yields is likely to continue in the coming months, as investors continue to seek out safe-haven assets. The Federal Reserve is expected to raise interest rates again in March, which will further increase the appeal of Treasuries.