Investors are piling into government bonds, causing yields to fall to new lows, as fears over the health of the global economy grow. Government bonds are usually seen as a safe alternative to stocks, which react in a more volatile way to bad news. As bond prices rise due to the influx of new demand, the interest “yield” on top of them falls by a corresponding amount. The fact that investors are willing to pay rising prices for an instrument that pays them less and less is an indicator that fear is their motivating factor. The renewed interest in government …read more
Source: Business Insider
