NEW YORK – Bonds issued by Uncle Sam are once again risk-averse investors' best friend.
The fear factor is again driving trading decisions on Wall Street. Investors looking for a safe place to stash cash and a way to sidestep Europe's deepening debt crisis are dumping risky assets such as stocks and piling into the perceived haven of U.S. government bonds, driving down yields Thursday to new all-time lows.
In what Wall Street dubs the "risk-off" trade, huge amounts of capital is flowing into long-term Treasury bonds. The yield on the 10-year note, which moves in the opposite direction of price, dipped to a record low 1.69% Thursday. It hit its previous low of 1.73% on Sept. 22, when markets were fretting over issues similar to ones they are dealing with now — the possibility of Greece defaulting on its debt and dropping out of the eurozone, and the potential aftershocks from that.
Resources for YOU: