by Wolf Richter
Wolf Street
Airline bonds, holy moly.
Someone got spooked. The US Treasury 10-year yield plunged in a magnificent manner to a new record low of 0.66% on Friday morning. When the yield of a bond drops, its price rises, and investors who were long these Treasuries made some money. The yield started out this year at about 1.9%, and meandered lower. By February 20, it was 1.57%. This was the date the economic consequences of the coronavirus began to sink in. A breathless plunge commenced, including a 25-basis-point plunge early Friday to 0.66%. By the close of Friday, it had ticked up 0.74%, having plunged by half in two weeks: