A shift by household investors from bonds into equities that Bank of America Corp. dubbed the great rotation is being muted as pension funds and insurers boost fixed-income assets to match future obligations.
Treasuries rose, with seven-year yields falling to the lowest level in four months, amid speculation subdued inflation and slowing growth will boost demand at a sale of $29 billion of the securities today.
The U.S. will likely prioritize debt payments ahead of other obligations, should Congress fail to raise the nation’s $16.7 trillion debt ceiling, according to Moody’s Investors Service. Treasury has signaled less optimism on the department’s ability to “pick and choose” payments.
Chief executive officers at companies ranging from Honeywell International Inc. to JetBlue Airways Corp. said that a prolonged shutdown of the U.S. government has the potential to jeopardize the economic rebound.
Goldman Sachs Group Inc. , the most profitable securities firm in Wall Street history, is marketing 50-year debt to individual investors as returns on long-dated bonds exceed those on shorter-maturity securities.