“The “fear trade” is alive and well.
Investors rediscovered the appeal of haven Treasury bonds on Thursday, amid a flurry of worrying news ranging from North Korea to the domestic job market.
The mood change sent Treasury prices rallying to the highest point this year. The yield on the 10-year Treasury note, which moves inversely to prices, fell to its lowest point this year and equal to its closing level at the end of 2012.
The moves left buyers of the 10-year Treasury note in the black for the year, a notable swing after the debt spent the entire first quarter in negative territory.
The rally in U.S. government debt began early Thursday after the Bank of Japan8301.JA -3.16% launched an aggressive monetary-easing policy. Buyers poured more heavily into the market after U.S. jobless claims jumped unexpectedly to the highest level in four months, a sign of softness in the labor market…..”