The yield on the US 10-year Treasury has dropped below 3 per cent, while the yield on the 2-year note has fallen below 0.6 per cent, a record low.
It appears that sizable amounts of money continue to be flowing into the perceived safe haven of Treasury securities. Given the huge amount of new debt the Treasury will be coming to market with in the years ahead, this is truly stunning. But panic is panic.
Would you loan anyone money for 30 years at 3.96%? How about 2.985% for ten years? Depression baby, take a whiff!
ReplyDelete