How low can bond yields go?

By CNN Business’ Paul R. La Monica in New York. 8/5/2019

Investors are so nervous about the trade war with China that they are frantically scooping up US government bonds and pushing yields sharply lower in the process.

Conservative investors are worried about a possible liquidity crisis and it’s better to own safer government bonds than speculative stocks. If you’re saving for retirement or other long-term goals, preserving capital is more important than generating huge returns.

Why on Earth are investors buying Treasuries and European bonds with negative yields? It’s because you want to hold the safest asset you can find,” said Brendan Mulhern, global strategist with Newton Investment Management.

“People are forced to buy low risk assets for liquidity needs because there is a perception that liquidity is deteriorating,” Mulhern added.