Why bond yields are tanking

The yield on the 10-year Treasury note (^TNX) hit a new low for the year, sinking as low as 2.43% Wednesday, its lowest level since June 2013. In a phenomenon that has surprised many on Wall Street this year, money is rushing into Treasurys even as stocks hover near multi-year or all-time highs.

Yahoo Finance Senior Columnist Michael Santoli says the flood of money into bonds is a global phenomenon and that as low as yields have fallen in the United States, they’re still better than much of the world. “If I want to give you a list of the countries whose 10-year debt trades at lower yields than the United States, it’s almost all the developed world,” said Santoli, highlighting that the United Kingdom, Canada and Germany are among the countries with lower yields than U.S. debt right now. “Globally, there’s a scarcity of yield.”  (more)

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