Bond-Market Selloff Deepens as Money Managers Pile Into Cash
- BofA investor poll shows net 54% say stocks, bonds overvalued
- Ten-year Treasury yield reachest highest in three months
What's Behind the Recent Selloff in the Bond Market?
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Treasuries fell, driving 10-year yields to the highest in three months, as a Bank of America Corp. survey showed investors ramping up cash holdings to near the highest in 15 years.
Longer-dated securities, which have been outperforming in recent months, led losses. The difference between yields on Treasuries due in two and 30 years, a gauge of the yield curve, widened to 166 basis points, the most on a closing basis since June. Fund mangers upped their cash hoard to 5.5 percent, according to the September survey by Bank of America, near the highest since 2001. A record 54 percent of respondents said stocks and bonds are overvalued.