The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content


()

Shocker: Bonds are beating stocks. But why?

Remember those predictions that U.S. government bond prices were headed lower as yields rise in anticipation of an improving economy and shifting monetary policy from the Federal Reserve? Well, they aren’t unfolding as planned.

The yield on the 10-year U.S. Treasury bond has fallen to just 2.61 per cent after starting the year above 3 per cent. It is close to its lowest level since last June.