What do low treasury bond yields indicate?
Successful share market investors will also keep an eye on bond yields. This is because it is an indication on how investors perceive the economy. Yields on US treasury bonds have recently fallen to historical lows, so what does this say about how investors perceive the state of the economy? Inverse relationship Bond prices and bond yields move in opposite directions. When investors flock to take positions in bonds, this causes bond prices to rise as demand increases. However, it …