3.50 3.30 3.10 2.90 2.70 2.50 2.30 2.10 1.90 1.70 1.50 This collapse represents a "flight to quality" and suggests that a lot more pain could be in store for equity investors. 31/05/2018 30/06/2018 US 10-Year Bond Yields, % May 31, 2018 to May 31, 2019 31/07/2018 31/08/2018 30/09/2018 /10/2018 30/11/2018 The 10-Year US Government Bond Yield fell 42 basis points during May. 31/12/2018 31/01/2019 28/02/2019 31/03/2019 30/04/2019 31/05/2019 Source: CEIC The yield is 2.1% now, down from 3.25% in November.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A3) Finance Question 3 Based on the chart below, provide TWO (2) key observations that can be made. Explain how each observation may have happened.
3.50
3.30
3.10
2.90
2.70
2.50
2.30
2.10
1.90
1.70
1.50
This collapse represents a "flight
to quality" and suggests that a lot
more pain could be in store for
equity
investors.
31/05/2018
30/06/2018
US 10-Year Bond Yields, %
May 31, 2018 to May 31, 2019
31/07/2018
-31/08/2018
-30/09/2018
/10/2018
30/11/2018
The 10-Year US Government
Bond Yield fell 42 basis points
during
May.
31/12/2018
31/01/2019
28/02/2019
31/03/2019
30/04/2019
Source: CEIC
31/05/2019
The yield is
2.1% now,
down from
3.25% in
November.
Transcribed Image Text:3.50 3.30 3.10 2.90 2.70 2.50 2.30 2.10 1.90 1.70 1.50 This collapse represents a "flight to quality" and suggests that a lot more pain could be in store for equity investors. 31/05/2018 30/06/2018 US 10-Year Bond Yields, % May 31, 2018 to May 31, 2019 31/07/2018 -31/08/2018 -30/09/2018 /10/2018 30/11/2018 The 10-Year US Government Bond Yield fell 42 basis points during May. 31/12/2018 31/01/2019 28/02/2019 31/03/2019 30/04/2019 Source: CEIC 31/05/2019 The yield is 2.1% now, down from 3.25% in November.
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