Menu Search Facebook Twitter
Search Close
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers

Record-Low U.S. Treasury Yield Points to Rising Economic Fears

The U.S. economy, the world's largest, still looks relatively sturdy, far more so than most other major economies

The U.S. Treasury building in Washington, D.C., Photo: Wikipedia
1 year ago

WASHINGTON — Fear and uncertainty about the global economy are leading investors to embrace the relative safety of U.S. government debt and slashing yields to record lows.

Interest paid on the 10-year Treasury note reached 1.34 percent early Wednesday, just below the previous record set in 2012. Historically, when concerns have flared about a potential recession, investors have shifted money into havens such as U.S. Treasury and sent yields falling.

The market’s signal this time seems somewhat hazier than usual, and there’s far from any consensus among economists that a recession is approaching.

As recently as the start of June, the yield on the Treasury note was 1.85 percent. Then the U.S. government issued an anemic May jobs report. And Britain voted to abandon the European Union — a move that caught markets off guard and magnified concerns about the global economic order.

What makes the record-low Treasury yield something of an oddity is that the U.S. economy —  the world’s largest — still looks relatively sturdy, far more so than most other major economies. But yields on other nations’ debt are even lower. Yields on German and Japanese debt, for example, are negative. So foreign investors still get a smidgen of a return by buying Treasury notes.

All those factors have raised a host of questions: Are investors bracing for a global downturn? Will the United States remain an economic haven and benefit from the influx of capital? Does U.S. debt simply deliver a better return than foreign debt? Might inflation veer closer to zero?

In this case, the answer might be all of the above.

“There are a lot of factors conspiring to push the yield down to unprecedented levels,” said David Joy, chief markets strategist at Ameriprise Financial.

Other market analysts detect newfound signs of caution. They see uncertain investors seeking to shield themselves from the risks of the unknown.


Comments Whatsapp Twitter Facebook Share
More From The News

7.1 Magnitude Quake Kills 119 as Buildin ...

17 mins ago

TUSGS Says Mexico Quake Magnitude 7.1

5 hours ago

Kohl's to Start Accepting Amazon Returns ...

6 hours ago

Trump Lawyer: Senate Panel Delays Privat ...

6 hours ago
Most Popular

TUSGS Says Mexico Quake Magnitude 7.1

By The Associated Press

Mancera Pays Tribute to 85 Earthquake in ...

By Notimex

Hurricane Maria Smashes Dominica, Now Me ...

By The Associated Press

Mexican Independence Day: A Quick Guide

By Peter Appleby

Oaxaca Businesses Shut Down to Protest T ...

By Reuters