Treasury Yields Fall to February Low as Growth Concerns Revive
- Government bonds rally in U.S. and Europe before Brexit vote
- U.S. auctions 30-year debt at second-lowest yield on record
U.K. 10-Year Gilt Yield Drops to Record Low
Treasuries rose, pushing the 10-year note yield to the lowest since February’s global growth scare, as renewed concern over lackluster economic expansion and a potential U.K. exit from the European Union boosted demand for the safest government securities.
U.S. yields declined as U.K. gilt yields touched the lowest level on record ahead of the country’s June 23 vote on its EU membership. Oil prices fell as well, prompting a decline in U.S. break-even inflation rates, while the gap between U.S. two- and 10-year yields touched the narrowest since 2007. Adding fuel to the concerns were reports that billionaire investor George Soros has been making bearish investments driven by speculation over growth in China.