Flight to quality continues in wake of Afghan attacks

The flight to bonds as a shift into more secure investments has accelerated after the US attacks on Afghanistan, but gains may be limited as demand lowers expected yields. According to statistics from Bloomberg, Treasury notes rose for nine out of 10 days up to 8 October, with the 2.75% note maturing in September 2003 rising 31 cents per $1,000 as its yield fell two basis points to 2.68%, the lowest level since 1958. John Maskell, economist with Barclays Capital, says the group does not feel the market is fully aware of how bad the slowdown is going to be, especially in the Europ...