NEW YORK — The yield on the 30-year Treasury bond plunged to record lows below 3 percent Tuesday, showing that investors are finding it hard to stomach anything but government debt even for their long- term investments as the volatile year draws to a close.
The Federal Reserve provided extra encouragement for investors to keep buying government bonds. The central bank decided to crank down its target rate to a range of zero to 0.25 percent — a sign that it does not foresee inflation — and pledged to consider “the potential benefits” of buying longer-term Treasurys.
It looks like demand for them will remain high for some time.
The 30-year Treasury bond yield dropped as low as 2.78 percent Tuesday. Yields on two-year and 10-year bonds also reached their lowest levels since the government started issuing them regularly.
