Traders work on the New York Stock Exchange on the floor.
Brendan McDermid | Reuters
The 30-year government bond yield fell to a record low on Thursday morning, breaking 2% for the first time, according to Reuters.
That was only one day after the 30-year government bond reached a record low on Wednesday, taking into account market fears over the closely watched returns of the 10-year government bond and the 2-year reversal of the 30-year government bond lately stood at 1
"Interest rates are very low compared to recent standards, but given the very uncertain outlook, it still makes sense to have some exposure to US government bonds, and USD rates remain lower than comparable developed markets Attractive, "wrote strategists of DBS Bank in Singapore.
"Investors should also keep in mind that the rally in the bond markets looks set to be overstretched, with an overweight duration position vulnerable to good news that has been very poor in recent months," commented strategists on the recent inversion of the main interest rate curve US Federal Reserve Chair Janet Yellen said Wednesday that "this time it could be a less good signal".
"The reason for this is that there are a number of factors other than market expectations about future interest rates that depress long-term returns," Yellen told Fox Business Network.
Long-term yields have fainted month in which concerns about trade between the US and China and GDP growth – along with expectations of weak inflation and more aggressive measures by the central bank – are forcing traders to seek safer assets have driven.