Business and financeButtonwood’s notebook

The bond market defies the doomsters

THE yield on the ten-year Treasury bond fell to 2.13% on August 28th, after North Korea fired a missile over Japanese territory. Investors tend to buy government bonds when they feel risk-averse. That will have come as a surprise to those commentators who have called the bond market a “bubble” that is sure to burst; one British magazine made this a cover story back in September 2001. Every time the ten-year yield falls close to 2%, press references to a bond bubble seem to increase (see chart; the yield is inverted).

It is not just the press. Investors have been cautious about bonds for a while; the vast preponderance of fund managers polled by Bank of America Merrill Lynch in January had a smaller holding than usual in the asset class, just as they did in January 2016. But while inflation stays subdued, and central banks maintain short-term rates at historically low levels, government bonds seem able to attract buyers. Japan’s government bond yields have been very low since the start of the millennium; those betting on a crash in…Continue reading

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Congressional App Challenge Director Rachel Décoste: Get on Board the Tech Train

“Coding is one of the most in-demand skills. There’s a myth out there that you need to have this skill only if you work with computers, but as society develops, you’re going to see coding in every field. This is a skill that’s needed in all job sectors,” said Rachel Décoste, director of the Congressional App Challenge. “The jobs of tomorrow will require, if not coding, at least an understanding of how it works.”

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