Slide in bond yields hits new lows in US and Europe

There may be a simple answer as to why US 10-year yields are pinging below 4% this month even as the Federal Reserve raises interest rates, and why yields in Europe are near record lows while corporate bond spreads are too skimpy for comfort. The US government is likely to sell $650bn of bonds in the fiscal year ending in October, down from $740bn last year, according to estimates from HSBC Holdings. The US has sold $291bn of new Treasuries so far this year, less than the $298bn that changed hands in the year-earlier period. The situation is exacerbated at the long-dated end of the bond m...