What's Keeping Long-Term Rates So Low? - Real Time Insight

If you asked most investment professionals at the end of 2013 where they thought long-term interest rates would be in early May, the vast majority would have said "higher".

After all, a major buyer (the Fed) was exiting the market (bond prices move opposite of interest rates). But as you can see below, yields have actually fallen considerably so far this year.

Why is this? What do you think has caused the decline in yields for long-term Treasury notes this year?

A. Classic 'buy the rumor, sell the news' move
B. Flight to safety amid geopolitical uncertainty and/or a volatile market
C. Sluggish economic growth and/or low inflation
D. Something else

Also, where do you think rates will be 3 months from now?

Chime in below!