U.S. long bond demand raises prospect of whole curve yielding below 1%

A decline in U.S. Treasury yields over recent weeks has investors eyeing the approach of an unusual phenomenon – the entire U.S. yield curve sinking below 1%. Policymakers are looking to position the country to recover once the COVID-19 pandemic eases and allows the Fed to raise interest rates again. But those steps look a long way off as the virus continues to spread and talks on a new aid bill in Washington drag out. “Everybody thinks the Fed is going to be running rates near zero indefinitely. That’s bringing down the 30-year bond yield to incredibly low rates,” said Brian Bethune, chief economist for Alpha Economic Foresights LLC.
Read more: Reuters.