U.S. 30-year yields drop to record low

NEW YORK – U.S. 30-year Treasury yields fell to a record low below 2% and benchmark 10-year notes dropped to a three-year trough on Thursday amid persistent worries about global trade tensions and economic slowdowns around the world.

Yields on U.S. two-year notes also declined, sliding to a nearly two-year low.

A day after inverting, the U.S. yield curve steepened a little. Curve inversion, which occurs when long-term yields dip below short-term ones, is widely considered a warning that the economy is headed for recession.

U.S. yields fell further in midafternoon trading. Some analysts said the latest slide was due to a report from The Spectator that Federal Reserve Chairman Jerome Powell has banned any public appearances by any member of the central bank. The report also said appearances at conferences have been canceled, as well as scheduled interviews.

Reuters, however, cannot verify the accuracy of the Spectator report.

“Clearly that report moved the market: it moved Treasuries in particular,” said Lou Brien, market strategist, at DRW Trading in Chicago. “One of the interpretation to the report is that it’s a blackout period before a surprise move by the Fed.”

The Fed will have its next monetary policy meeting next month.

In mid-afternoon trading, yields on the U.S. benchmark 10-year Treasury note hit threeyear lows of 1.475%, not far from a record trough of 1.321 percent touched in early July 2016. Ten-year yields were last down 1.526%, from 1.581% late on Wednesday.

Yields on 30-year bonds, which fell earlier to fresh record lows of 1.916%, were last at 1.981% from 2.027% on Wednesday.