Bond rally

• The trade war heating up, continued worries about the conflict in the Middle East and concerns over growth have all sent investors rushing to the relative safety of bonds.
• Treasury yields dropped again this morning, reaching the lowest level on a closing basis since 2017.
• Goldman Sachs Asset Management International is sounding a word of caution, saying yields are poised to rebound as the U.S. economy is just too healthy for Treasuries to be at this level.
• Also worth noting: China’s holdings of the global benchmark have started to fall for the first time since November.

(Source: Bloomberg)