Treasuries
rose to new heights Monday (23 January 2012). New lows were set or
tied for the interest rates at the market close for the 3-year at 0.28%,
the 5-year at 0.57%, the 7-year at 0.93%, the 10-year at 1.47% and the
30-year at 2.52. The 20-year? That's very close too, within a couple
of basis points of tying its all-time low rate. Just three weeks ago (7
July 2012) I discussed the liklihood that Treasuries would continue to
be good portfolio holdings. When I was writing that article the 10-year
had just been trading with a yield of 1.67%. If it continued with a
similar move in the coming weeks the yield would fall to the 1.25% -
1.30% range.
Read more: http://econintersect.com/b2evolution/blog3.php/2012/07/24/what-about-a-1-25-10-year-treasury
Follow up:
Who'd
of thunk that we'd see a decline of 20 basis points in three weeks.
The previous article was actually discussing the 30-year Treasury, not
the 10-year. That also has rallied strongly with the yield declining by
22 basis points from 2.74% on 03 July 2012 to a close at 2.52%
yesterday (23 July). Nowhere in the July 7 article did I predict such a
sharp advance for bonds.Read more: http://econintersect.com/b2evolution/blog3.php/2012/07/24/what-about-a-1-25-10-year-treasury
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