The yield on the benchmark 10-year Treasury note fell to its lowest level since November 2016 on Wednesday, continuing its slide below 2% on expectations central banks around the world would respond to a slowing global economy with more monetary stimulus.
At around 8:17 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.951%, off a low of 1.939% hit in overnight trading. The rate on the 3-month Treasury bill ticked down to 2.198%, keeping a portion of the yield curve inverted.
Traders around the world snapped up government debt after the European Council on Tuesday nominated Christine Lagarde to head the European Central Bank. Many viewed the choice of Lagarde as a signal that euro zone rates will remain low for the foreseeable future as the ECB tries to foster inflation and GDP growth in the region.
Europe has seen markedly lower GDP growth relative to that of the U.S. in recent years. Economic forecasts have slumped further in recent months amid persistent tariff pressure from the Trump administration and cooler sentiment from manufacturers. The German 10-year bund fell to its lowest level in recorded history on Wednesday at -0.399%.
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