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By Bloomberg

Treasury 30-year yields were three basis points from an all-time low, with a new-year rally pushing returns past 7 percent, as plunging crude oil prices indicate inflation will slow.

This month’s returns are more than double the 3.4 percent gain from benchmark 10-year notes, according to Bank of America Merrill Lynch data. The MSCI All-Country World Index of shares has fallen 1.2 percent including reinvested dividends. A record decline in borrowing costs around the world is helping drive demand for U.S. debt.

“The rally will keep going,” said Hideaki Kuriki, a debt trader in Tokyo at Sumitomo Mitsui Trust Asset Management, which oversees the equivalent of $41 billion. “Crude oil will help keep inflation low. The American economy is still robust, but at oil companies and other energy companies, profit will go down.”

The U.S. 30-year bond yielded 2.39 percent at 10:05 a.m. in Tokyo, according to Bloomberg Bond Trader data. The price of the 3 percent security due in November 2044 was 113 2/32. The yield dropped to a record 2.35 percent last week.

Ten-year notes yielded 1.80, more than 40 basis points above the all-time low of 1.379 percent set in 2012.

Oil has fallen about 50 percent in the past 12 months.

German 10-year bunds yielded 0.45 percent yesterday, versus the record of 0.42 percent reached last week. Japan’s dropped to an unprecedented 0.195 percent yesterday.

The effective yield on the Bank of America Merrill Lynch Global Broad Market Sovereign Plus Index dropped to a record low of 1.14 percent earlier this week.