Article by ForexTime
Expectations that the Fed is less likely to push up interest rates this summer following a weaker-than-expected jobs report last Friday also have pressured U.S. bond yields. Yields fall when prices rise.
On Thursday, the 10-year Treasury yield fell to 1.678%, its lowest settlement since its 2016 trough of 1.642% in February.
Low yields also have made returns look more attractive in the stock market, where a weakening dollar and rising oil prices have helped boost shares.
The Dow Jones Industrial Average fell 19.86 points, or 0.1%, to 17985.19 Thursday but was still up 15% from its 2016 low and near its all-time high of 18312.39. The S&P 500 also slipped Thursday, by 3.64, or 0.2%, to 2115.48, but was just 0.7% below its record.
Recently, Treasury yields have been predominantly dragged down by the drop in government-bond yields around the globe, rather than by demand for haven assets spurred by concerns about the economy.
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Meanwhile, yields in Germany, the U.K. and Switzerland hit record lows this week, with the 10-year German bund touching 0.025% Thursday. Eurozone bond yields dropped sharply amid weak economic growth, low inflation and bond purchases by the European Central Bank.
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