Global Bond Yields Decline to 18-Month Low on Inflation Outlook

By Susanne Walker and Eshe Nelson

A gauge of government bond yields around the world fell to an 18-month low as tumbling oil prices push down inflation expectations and economic growth falters.

The U.S. benchmark 10-year note yield touched the lowest level in almost six weeks, still the highest yielding among the Group of Seven countries. Longer-term Treasuries fell after a report showed U.S. manufacturing growth last month exceeded forecasts. A measure of U.S. inflation expectations, called 10-year break-evens, dropped to the lowest level in three years.

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