Stocks plunge, but bonds are still red hot - CNNMoney
LeBas thinks that the 10-Year could fall as low as 1. 45% and that the 30-Year bond could hit 1. 75%. That would be a record low for the 30-Year, which is now hovering around 2. 25%. He argues that as long as inflation remains low and investors... Individual investors are flocking to bonds too. According to data from fund flow tracker EPFR Global, bond funds took in more than $10 billion last week -- a three month high. And EPFR said U. S. bonds attracted the most new money. At the end of the day, rising rates are usually a sign of an economy that's in high gear -- one where inflation is well above 2% annually. But consumer prices have risen just 0. 8% over the past 12 months when you include oil and food prices. Even when you back them out, prices are only up 1. 6%. That means the Fed probably won't raise rates too quickly. disclosed plans to sell $1 billion in bonds. The average rate on a 30-year fixed mortgage is 3. 66%, according to Freddie Mac. Still, investors that have been betting on a bond price collapse and subsequent spike in yields have been wrong for a while. Many experts predicted that bond yields would soar once the Fed stopped buying bonds as it. Source: money.cnn.com
