As investors scramble for security amidst elevated fears of European default, long-term bond yields are free falling across the globe – especially on the home front. Government of Canada 5 Year Bond Yields drop 14.39 per cent today, following a month of already record lows.
Seeking Out Safe Havens
The investing climate right now is all about safety. Closing on a week that saw a nervous Spain heavily investing in German safe haven bonds, it appears the flow has returned to North America, in addition to the U.S., British, German and Swedish 10-year bond yields also all hitting record lows. As interest rates in European countries steadily increase to heightening fears of default risk and yields drain in North America, could yields dip even lower? Time will tell.