Dimming prospects for a large fiscal stimulus package sends investors into U.S. government bonds, pushing yields lower.
Optimism about Covid-19 vaccines is raising hopes the economy will recover faster than expected. Investors are betting a rebound won’t come with a bout of inflation.
An abrupt reversal in many of this year’s most-persistent market trends has hurt a cluster of computer-driven funds.
Investors are pointing to one key factor lurking beneath a recent rally in U.S. speculative-grade bonds: falling real yields, which are driving those in search of higher returns to the high-yield market.