U.S. Treasury Prices Set for Best Gain in Three Years Amid Market, Geopolitical Turmoil (TLT) (UST)

U.S. government bonds are set to cap the biggest annual gains seen in three years.

The WSJ noted Wednesday that 10-year Treasury yields fell to 2.186 percent, from 3.03 percent at the end of 2013. (Yields fall as prices rise.)

Including price changes and interest payments, U.S. bonds have averaged 4.95 percent this year, which is also the best return since 2011.

Data comes as many traders were expecting a drop in bond prices with expectations of global stability taking hold. In fact, global economic, geopolitical, and market scares have caused many investors to pile more money into the "safe haven."

China's robust growth vastly slowed this year, Japan slipped into recession, and the euro zone has been relatively quiet. New stimulus in Europe and Japan helped out Treasuries, as has recent volatility in the oil market.

Bond markets are set to close at 2pm EST today and remain closed for the New Year holiday on Thursday.

You May Also Be Interested In

• Fed Swaps No Longer Fully Price In Rate Cut Before December - Bloomberg
• Natural Gas Inventory 50 bcf vs 52 bcf Expected
• Wall St stocks end higher with major corporate earnings in view