So much for steadily higher interest rates in 2014.
Most of Wall Street expected bond yields to climb this year as the Federal Reserve hit the brakes on its stimulus program and the economy revved ahead.
But Treasury yields, which move in the opposite direction of prices, have remained stubbornly low due to countless geopolitical blowups, slow global growth and a lack of inflation. Treasury yields have also been pushed lower by stimulus efforts from the European Central Bank, moves that have made U.S. debt look even more attractive on a relative basis.
Related: Draghi gives Europe 1 trillion euros
After starting the year at nearly 4%, the yield on the 30-year Treasury has tumbled to barely above 3%. That's why the PIMCO 25+ Year Zero Coupon U.S. Trs ETF (ZROZ) has surged about 30% this year. The index closely tracks a Bank of America Merrill Lynch long U.S. Treasury index.
It's been a much needed bright spot for Pimco, the firm with $2 trillion of assets that has been rocked in recent days by the surprise exit of legendary founder Bill Gross.
