June 20, 2019 – The Wall Street Journal reported today that investors and other experts in the financial industry were caught blindsided by the plummeting 10-year Treasury yield, which went below 2% yesterday.

As recently as January, the Journal surveyed 69 economists and the the average forecast was about 3%. The most recent survey of economists published this month forecast 10-year yields at 2.34% by end of the year.

Depressed yields in Europe, trade tensions and slowing economic growth in the U.S. and globally are the most often cited reasons why long-term yields are at multi-year lows.

After hiking rates four times in 2018, the U.S. Federal Reserve has signaled that it would consider cutting rates this year.

Read the WSJ report.

Contact Jumanne Johnson at JJ@BuyMuni.com.