OpenMarkets Weekly: Why Are 10-Year Yields So Low?

Safety and a search for yield among factors driving Treasury markets.
As stock markets became volatile in late February and early March, investors made a move toward U.S. Treasuries.
The result has been record low yields for the U.S. 10-year Treasury note, which reached below the one percent mark for the first time.


At A Glance Safety and a search for yield among factors driving Treasury markets. As stock markets became volatile in late February and early March, investors made a move toward U.S. Treasuries. The result has been record low yields for the U.S. 10-year Treasury note, which reached below the one percent mark for the first time.
Jack Bouroudjian examines the factors driving declining yields, focusing on four areas:
The safety trade Federal Reserve action Disinflationary pressure The search for yield Central bank action across the globe, matched a lack of inflation has led to a long-term decline in the U.S. 10-year yield, Jack points out. Perhaps the greatest factor driving the recent action in Treasuries, he says, is the search for a return.
"Whether it be a virus, a slowdown of growth or another 'black swan' event, US Treasuries are a perceived safe haven. When capital needs a home, capital goes to where it is treated the best. For global capital, that home is often the U.S. Treasury markets."
Watch this week's video above.
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