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30Y Treasury Yield Tumbles To Record Low
It would appear the housing data was not the growth-inspiring 'everything is awesome' facts that we were told about last night. US Treasury 30Y yields have just broken to a new record low 2.3500% handle... The yield curve (2s30s) has cracked lower to its flattest since 2008. As we explained here, this is not unexpected as anticipation of ECB QE means duration scarcity rules.
30Y Treasury yields hit record low...
Which leaves the yield curve at its flattest since 2008...
Larry Fink proclaimed this morning that record low yields are not a reflection of weak economic growth but show debt issuance is not keeping pace with bond demand...of course what he misses is the reason that debt issuance is not keeping pace is because trade is so low that it's not generating big enough deficits to create the debt.
Charts: Bloomberg
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Golf Clap ! .... now onward to parity with the JGB30y @ 1.08 !!!!
In Soviet Russia, mortgage pay you to stay in home.
While I have no interest in owning a 30 year bond at 2.35%, I bet rates keep going towards and through zero.
Is anybody spending their own money on these bonds?
Jap. and Euro pensions.
Which is fine if I can keep refinancing my mortgage towards zero.
Me thinks mortgage rates will decouple from Treasuries in the abcense of QE MBS purchases. Risk premium is about to be priced into mortgage rates in a big way as Housing Bust 2.0 accelerates.
Wait until the yield curve is completely Flat.
Definitely a Bullish sign of Robust Ekonomic Grote, yes.
So... This would have been the best time ever for the Fed to sell USTs back into the market to begin winding down QE? And if you weren't going to do it now, you'll never do it?
Yeah
Q: Do I understand this correctly? ... High Yield = High Risk of Default, but Low Yield = Low Return?
Sounds like a Bond market that's just BEGGING for central control, that results in good yields and low risk. I wonder where that can (still) be had...