Via Bloomberg, today's action in the treasury market. This is a record low, worse than even at the hight of the crisis in late 2008. We need a more expansionary montary policy stance announced as soon as possible (ideally, as of 2008). We last saw 10 year treasury rates under 2% in 1950, one year before the Fed was allowed to stop pegging short term rates as determined by the Treasury (the 1951 Treasury Fed Accord).
The German 10 year bund is doing pretty much the same thing. I thought the German bund would have a significantly lower yield, but it is only a few basis points below the treasury (it looks like it has a higher yield here, but you need to compare the yields at the same time of day).
Comments