This current rush of bonds seems to be because investors are afraid of a drawn trade war between the United States and China.
"Bonds rally as a sanctuary, and draws lower results as investors have been over told US and Chinese trade negotiations. The sentiment is getting worse as trade tensions between the two forces do not show relief," said Jasper Lawler, London's Research Director Capital Group, in a report
The yield on the 3-month US bond is currently higher than 1[ads1]0 years, which fluctuates around 2.35%, which is another reason for concern, when short-term interest rates are higher than long-term yielder
"When the yield curve is reversed, it is not time to borrow money to take a vacation to Orlando.
The yield curve inverted once before this year, in March, but before that, the yield curve had not reversed since 2007 – Just before the start of the big recession.
Should investors be concerned about another dramatic decline like that? Not quite yet.