The U.S. Treasury 10-year note fell to a record low Tuesday, in the latest reflection of the toll Britain's Brexit vote has taken on world financial markets.
The yield on the 10-year note closed below 1.4 percent for the first time ever, in a round of historic descents by global markets. Ten-year government debt yields also fell to historic lows in Germany, Switzerland, France, Denmark, Sweden and Britain itself.
During the day Tuesday, the U.S. 10-year note dropped as low as 1.357 percent, but rallied to close at 1.37. The previous record low was 1.404 percent in July 2012, when the eurozone was in crisis over sovereign debt.
The yield on the U.S. Treasury's 30-year bond also fell Tuesday to a record 2.138 percent.
Low rates can be a sign of concern about economic growth, because they indicate that investors are avoiding risk. With Britain and the eurozone in flux, financial experts say, U.S. government bonds look safer by comparison.
That perception is bolstered by the new probability that the U.S. Federal Reserve will not raise interest rates as expected, in light of last month's surprise vote by Britain to leave the European Union. The financial news outlet Bloomberg said the chance that the Federal Reserve would raise rates was 59 percent before the Brexit vote, but now stands at only 12 percent.
via Voice of America http://ift.tt/29l4Fsr
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