Then-U.S. Federal Reserve Chairman Alan Greenspan called it a conundrum a decade ago when he boosted interest rates only to see bond yields fall. European Central Bank President Mario Draghi is facing a similar puzzle with the euro.
The difference in yields between two- and 10-year Treasury notes narrowed to the least this month as investors bet on slower growth with the International Monetary Fund reducing its 2014 outlook for the U.S. economy.
Matthew Rutherford played a key role as the Treasury navigated the global financial crisis, the first downgrade of U.S. government securities and a record budget deficit. What lies ahead for him will be much subtler.
So much for the unofficial start of summer. Corporate-bond sales in the U.S. since the Memorial Day holiday are off to the fastest pace in five years as companies from Verizon Communications Inc. to Baytex Energy Corp. lead more than $48 billion of issuance.