News, Commentary & Events: AGG

Asset prices aren't being driven by fundamentals, warns Deutsche Bank's Slok. Major stock-market indexes remain within shouting distance of all-time highs at the same time that investors are buying up corporate and sovereign debt, extending an "everything rally" that has been a noteworthy characteristic of financial markets in 2019.. The S&P 500 indexhas risen more than 16% so far this year, while the iShares Core U.S.

The 10- year yield last set its all-time low at 1.32%. The 10- year Treasury yield's slide has left a scorched path in its wake as bond-market forecasters struggle to make sense of its precipitous drop. Investors now say the 10- year Treasury yield only has one more psychological level to breach before it makes history-- its all-time low of 1.32% established in mid-2016.

How can government bond yields have fallen so low in such a short space of time? Société Générale's analyst Albert Edwards sees yields for the bond markets in Europe and the U.S. headed lower, despite much of eurozone debt carrying yields below 0% already and Treasury rates hanging near three-year lows. "Although the tsunami of negative yields sweeping the eurozone has attracted most attention, yields have also plunged in the US with 30 year yields falling to an all-time low...