FYI: Individual investors are helping power this year’s rally in U.S. government debt, a sign many remain cautious even as stocks push to new highs.
Their assets in taxable-bond mutual funds rose by a net $316 billion in the first five months of the year, according to data from Morningstar Direct. Individual investors are on track to buy a majority of the U.S. government’s newly issued longer-term debt this year for the first time since the Treasury Department began publishing data from its auctions.
That demand has helped drive the yield on the benchmark 10-year Treasury note, which falls when bond prices rise, to multiyear lows around 2%. The surge in demand is especially notable because investors tend to buy bonds when they’re worried, yet stocks have surged to records.
Regards,
Ted
https://www.wsj.com/articles/as-stocks-surge-to-records-nervous-investors-buy-bonds-too-11562578201
