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Welcome back hikes had used a ten year treasury yield falling to another record -- today -- yields have even further to fall and what are investors to do about those joining us now -- and is -- -- chief investment officer at American century investment.
Did what do you think how much lower can it go what is -- telling you.
Well it tells me that that there's this is hard to find safe places to invest in this environment wearing -- willing to -- the US government.
Money for ten years at one point 6% it becomes really it's a return of capital more than a return on capital.
But we hear all the time that rates are so low they can't possibly go any lower but that's not the case I mean when when rates are zero than they can't really going lower.
So what I -- It means you they could -- but what does that mean you giving the Fed gets involved this or something the average investor should do against bad protection for this going lower.
Or is this superb at a phenomenon for professional traders when he picked.
Well it's it's tough for investors -- -- -- obviously tremendous amount of money coming into bond funds right now our the last year over 200 billion dollars is coming to bond funds.
And those investors are looking for -- this is very hard to find but also looking for safety and the safety is what bonds will provide for them.
So you know -- buying intermediate or shorter type maturities -- network rises in interest rates from here won't be a real problem.
They can ride it out so that bonds are providing exactly what investors want safety and you just are smaller amounts -- than usual.
Thank you and thanks for coming on sorry to pick -- -- a historic day there with the former president thanks coming on we appreciate it.
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