Investors flocked into longer-dated U.S. Treasuries for the second day in a row on Thursday, sending the yield on those products to all-time lows. The movement was one of the clearest signals that money managers took into account the crisis in Europe and some weak U.S. economic data figures and decided against moving into riskier assets.
Shortly after 9 a.m. New York time, benchmark 10-year, T-notes were offering a yield of 1.6 percent, while 30-year bonds offered 2.6763 percent. The return on the 10-year obligations was the lowest ever offered by those securities. The previous all-time low was set Tuesday, at 1.619 percent.
While analysts were cautioning an end to the bull run in the market for U.S. government paper just a few months ago, when it appeared the European sovereign debt crisis was under control and the U.S. economy was recovering, many now believe the yield on those securities could go even lower, predicting 10-year bonds could flirt with returns close to 1.5 percent.