U.S. Treasury yields continued to tumble last week as fears of a global economic slowdown caused a rush to buy Treasury bonds. 30-year yields dropped to all-time lows and at one point, traded below 2%. With $15 trillion in negative-yielding bonds globally, U.S. yields still look relatively attractive.
In the week ahead, two events will receive significant attention. The minutes from the Federal Reserve’s (Fed) last meeting will be released Wednesday. Details of the internal discussion leading up to the first rate cut in a decade will be scrutinized for clues about a potential rate decrease in September. Later in the week, the Kansas City Fed hosts central bankers from around the globe in Jackson Hole, Wyoming, for its annual symposium. The potential exists to hear more about nontraditional monetary policy ideas, given the current state of the global economy.
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