As baby boomers age, they are less likely to feel their investment oats and more eager to feel financially secure, as market observers suggest a time will come when this group will move out of stocks and into bonds. The down side, The Wall Street Journal reports, is that if that happens, future retirees may get the safety of bonds but will be disappointed with the yield, as rising demand for them would keep interest rates low.
Such effects are already being felt, as the U.S. Treasury‘s recent auction of 30-year bonds – its first in five years – left yields for the new offering below every other Treasury security. And in the U.K., which likewise has been issuing long-term bonds to meet demands from pension plans, The WSJ notes, its 50-year inflation-protected bond, yielded less than 1%.