The yield on the U.S. 30-year Treasury bond fell to record low and the U.S. 10-year Treasury yield fell below October lows to hit a full-year low early Wednesday as a surprise drop in a measure of retail sales in December sparked fresh bets the Federal Reserve might not raise interest rates in 2015.
“It’s all about retail sales,” said Art Hogan, chief market strategist at Wunderlich Securities. “The question is, the consumer is saving at the pump but is he spending?”
The Commerce Department said on Wednesday retail sales excluding automobiles, gasoline, building materials and food services fell 0.4 percent last month after a 0.6 percent rise in November. Economists had expected core retail sales to rise 0.4 percent.
In midmorning trading, the yield on the 10-year bond was trading at 1.821 percent, after briefly touching 1.784 percent—its lowest level since May 2013.
The yield on the government’s 30-year bond fell to a record low of 2.395 percent, surpassing the previous record low of 2.443 percent set in July 2012, according to Tradeweb data. Recently, it traded at 2.432 percent.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.