Investors are once again hiding out in boring bonds.
The 10-year Treasury yield fell below 1.59% on Wednesday afternoon as downturn fears return to Wall Street.
The slip into bond yields is a sign of soaring need for safe haven assets such as Treasuries as US stocks drop sharply. The Dow has lost about 800 points, or 3 percent since Monday’s close.
The spark for its rush into bonds was Tuesday’s dreadful manufacturing report, which revealed America’s factories endured their worst month since the end of the Great Recession.
The 10-year Treasury rate, which goes in the opposite direction of this price, stood at 1.75% shortly before that alarming manufacturing report was released. It slumped to as low as 1.58% on Wednesday as US stocks tumbled.
Recession fears drove a similar push into bonds a month. The 10-year Treasury yield plunged below 1.43percent in early September, flirting with record lows.