By Kim Khan
The yield on the benchmark U.S. government bond passed another milestone Thursday, falling below 0.9% for the first time as investors continued to price in lower interest rates amid economic uncertainty caused by Covid-19.
Bonds rallied as money bounced back into safety and away from risk, sending the 10-year Treasury yield to a record low of 0.899% intraday. It was at 0.906% in afternoon trading.
Shorter-term yields were dropping even more, with the 2-year yield at 0.566%.
That shows that investors “have priced in a big round of interest rate cuts while also rushing to revise down their global growth outlook,” Allianz (DE:ALVG) Chief Economic Adviser Mohamed El-Erian tweeted.