Maybe supportive of fixed income this year are pension plans - which find themselves as fully funded as they've been in a long time - shifted money out of stocks and into bonds in Q3 at the fastest pace since 2008.
Ford was among those locking in equity gains, boosting its debt investments to 70% last year from 55% in 2012, and is now looking to raise the level to 80%. Ryder System is increasing its debt allocation to 45% from 30%, says Treasurer Dan Susik. "Pension plans don’t want to give back the gains that essentially took over five years to accumulate," says Millman's Zorast Wadia.
Treasurys are having another good day, the yield on the 10-year off 2 bps to 2.84%.