(Reuters) – U.S. 30-year Treasury yields fell to a record low below 2% and benchmark 10-year notes dropped to a three-year trough on Thursday amid persistent worries about global trade tensions and economic slowdowns around the world.
A day after inverting, the U.S. yield curve steepened a little. Curve inversion, which occurs when long-term yields dip below short-term ones, is widely considered a warning that the economy is headed for recession.
“I don’t think we have seen a bottom in yields yet,” said Gary Pzegeo, head of fixed income at CIBC Private Wealth Management, in Boston.
“We’ll likely have a reaction from the Federal Reserve at the next meeting. That could be something that fuels further moves lower in parts of the yield curve depending on how aggressive a stance they take.”
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