“The fear factor is again driving trading decisions on Wall Street. Investors looking for a safe place to stash cash and a way to sidestep Europe’s deepening debt crisis are dumping risky assets such as stocks and piling into the perceived haven of U.S. government bonds, driving down yields Thursday to new all-time lows,” USA Today reports.
“It seems like every time we get to new lows (on the 10-year note) people say we can’t go any lower, but we do. Uncertainty is what motivates people to buy Treasuries,” said Gregory Whiteley at DoubleLine Capital in the report.
Yields on the 10-year Treasury note were hovering around 1.7% on Friday.
10-Year Treasury Bond Yield
iShares Barclays 20+ Year Treasury Bond Fund
Full disclosure: Tom Lydon’s clients own TLT.