Bond bulls just sent a friend request to Facebook Inc.The turmoil around the social media company — and technology stocks in general — has forced 10-year Treasury yields out of a 20-basis-point range that’s held since early February. The benchmark dropped as much as three basis points Wednesday to 2.74 percent, the lowest level since Feb. 6, following an eight basis-point drop Tuesday. The yield has broken below the key 50-day moving average for the first time since mid-December.
For those caught off-guard by the extent of the bond rally, the shift is “still not alarming but definitely worth watching current rates if equities can’t find their way home,” Jim Vogel, a strategist at FTN Financial Capital Markets, wrote Tuesday in a note. “As various tech and social media stories continue to get pummeled on a regular basis, however, trading at 2.805 percent and below is gaining ground.”
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