Tallahassee Journal

10-year U.S. bond dips below 2%, a 19-month low

10-year U.S. bond dips below 2%, a 19-month low

The safety trade is alive and well. Want proof? The yield on the 10-year Treasury note fell below 2% in early trading Tuesday for the first time since May 2013. Investors appear to be a tad jittery at the start of 2015. The 10-year U.S. government bond, considered a haven during times of market turbulence, dipped as low as 1.96% in early trading Tuesday. The last time it was that low was on May 24, 2013, when it briefly dipped as low as 1.98%. The last time the benchmark 10-year note closed below 2% was on May 21, 2013, when it finished the session at 1.94%.GTY 461057128 A FIN USA NY

The so-called flight to safety comes amid a sharp sell-off in U.S. stocks to kick off the New Year. The Dow Jones industrial average plunged more than 330 points Monday, its worst one-day drop in three months. The blue chip stock gauge is off nearly 2% heading into today’s trading session. In early trading the Dow is up 25 points, or 0.15%, to 17,527. Investors are also rattled by the continued plunge in oil prices. A  barrel of West Texas Intermediate crude briefly dipped below $49 per barrel in early trading Tuesday — a fresh 5 1/2 year low.

Fears of a possible Greece exit from the Eurozone is also rattling investors. The low yields in the U.S. are also a result of expectations for the European Central Bank to announced a full-blown, Federal Reserve-style government bond-buying program later this month to jump-start the weak Eurozone economy. Weak economies abroad are causing angst on Wall Street and raising fears that the recovery in the U.S. will be dented by weak economies around the globe. Deflation fears are also rising amid dangerously low inflation in the Eurozone.