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Home / Business / Bond rates are tumbling across the Pacific

Bond rates are tumbling across the Pacific



Pedestrians Reflected in a Window in a Tokyo Securities Depository August 30, 2017.

Toshifumi Kitamura | AFP | Getty Images

The return on 10-year government bonds in major Asian markets has dropped sharply as the recession tempts investors who are streaming into assets. Interest rates are falling in pace.

Here's a look at how each market's 10-year government bond yield has fallen by Thursday morning, versus a week ago and the beginning of the month.

Recession fears have roiled markets. The return on the benchmark index for the 10-year Treasury broke below the 2-year yield early Wednesday, which is a phenomenon in the bond market that has been a reliable, albeit an early indicator of economic downturns.

The yield on the US 30-year bond also fell to a new low.

In the United States, investors have also rushed into bonds. The iShares 20+ year government bond ETF, TLT jumped 2.1% on Monday, the biggest gain in a year.

Commenting on the recent inversion of the US yield curve, former Federal Reserve leader Janet Yellen said Wednesday that "it may be a less good signal" this time.

"The reason for that is that there are a number of factors other than the market's expectations of the future path for interest rates that are pushing long-term returns," Yellen told Fox Business Network.

– CNBC's Eustance Huang, Thomas Franck, and Patti Domm contributed to this report.


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