Treasuries See U.S. Falling Over Cliff as Yields Converge
Bloomberg reported that while the economy is creating jobs, housing prices are recovering and consumer confidence is the highest in five years, bond investors are seeking safety from a possible downturn next year.
Bloomberg said the biggest Treasury rally in five months is underlining market concern that President Barack Obama and House Republicans will fail to avert $607 billion in mandated spending cuts and tax increases starting January 1.
Bloomberg notes that yields dropped to a two-month low on the prospect of a divided Congress stalling any budget deal and impeding the recovery from the worst recession since the Great Depression.
To read the Bloomberg story, click here