Investors are nervous on Wall Street after the 30-year bond yield fell to a new low Wednesday. Photo by John Angelillo/UPI | License Photo
Aug. 14 (UPI) — The benchmark 30-year Treasury bond fell to a record low Wednesday as investors looked for a safe place to put their money amid the threat of a recession.

The U.S. 30-year bond traded at 2.015 percent just before 8 a.m. Wednesday, a new all-time low. The previous low was 2.0889 percent in June 2016 after Britain voted to leave the European Union. The 10-year yield also fell below the 2-year rate, a reliable indicator that a recession is looming.

“It’s a very unusual time period,” said Arthur Bass, managing director of fixed income financing, futures and rates at Webush Securities.

The instability sent Dow futures into free fall, losing more than 400 points Wednesday morning. News that the German economy shrank in the second quarter compounded the problem.

The falling yields mean that investors are nervous about the short-term prospects for the U.S. economy. Wall Street analysts note that an inversion of the 10-year Treasury note and the 3-month Treasury bill has preceded every recession in modern history. The last time the yield-curve inverted was December 2005 but the recession didn’t hit until two years later.

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