Treasuries Deliver $700 Billion Windfall to World Safety Seekers

  • U.S. 10-year notes pare gains after yields fall to record low
  • Fed minutes show heightened uncertainty after payrolls slump

The 2016 bond-market rally that drove Treasury yields to record lows this week has generated more than half a trillion dollars in gains for global investors.

Treasuries have earned $737 billion this year, according to Bank of America Merrill Lynch index data, as signals that policy makers may add to stimulus encourage investors to pad returns by buying longer-dated debt. The Bank of Japan and European Central Bank are experimenting with negative interest rates as traders speculate the Federal Reserve will be unable to lift rates for years.

Eliza Ronalds-Hannon | Bloomberg

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