BLOOMBERG. U.S. yields fall to record as BlackRock, Vanguard see more gains

Yields on 10- and 30-year U.S. Treasuries touched record lows, defying forecasters who for years have said they would rise, amid signs that Britain’s vote to leave the European Union will curb global economic growth and prevent the Federal Reserve from raising interest rates this year.
Just days before America’s 240th birthday, the U.S. 30-year bond yield dropped as much as 10 basis points to an unprecedented 2.1873 percent, while benchmark 10-year yields touched 1.3784 percent. They joined a rally in bonds around the globe as some of the world’s biggest investors, including BlackRock Inc., Guggenheim Partners and Vanguard Group Inc., said the Brexit vote means subdued growth and lower yields for years to come.
The decline in yields on Treasuries, the world’s largest bond market at $13.4 trillion, will affect everything from U.S. mortgages and corporate bonds to borrowing costs for cities and governments around the globe. The rally extends a bull market for U.S. debt that began in the early 1980s, after 10-year and 30-year yields peaked above 15 percent. It comes as central banks abroad are experimenting with negative interest rates to spur their economies, pushing yields on almost $12 trillion of government bonds from Germany to Japan to Switzerland below zero and boosting the relative allure of Treasuries.
“The reason is simple: if you’re facing negative interest rates on over 30 percent of government debt, you’re going to go look for where you can get positive rates,” Mohamed El-Erian, the chief economic adviser at Allianz SE and a Bloomberg View columnist, said in an interview with Bloomberg Television. U.S. 10-year yields “can go to 1.25 percent quite easily if we continue to see this combination of more central bank activism and a slowdown in Europe.”
https://www.bloomberg.com/news/articles/2016-07-01/u-s-30-year-yield-at-record-low-in-el-erian-s-slower-growth-era