Gooble Gobble: European Sovereign Yields Plummet, US Treasury Rates Fall As Well

Confounded Interest ^ | 04/22/2013 | Anthony B. Sanders

[whitedog57]

Yields on European sovereign bonds plummeted today in the expectation of another round of global monetary easing. In particular, the PIGS (minus Greece) fell over 10 basis points. Greece actually rose.

Japan’s 10 year sovereign yield rose today by 2.9 basis points. However, the Japanese sovereign curve remains below the level when the Bank of Japan announced their mega-easing.

Here is a different look at the yield surface for Japan:

On this side of the Pacific Ocean, the US 10 year Treasury fell 1.2 basis points to remain under 1.7%.

And Bankrate’s 30 year fixed average has fallen to 3.51% after rising from record lows.

And the Bankrate 30yr / Fannie 30yr current coupon spread has fallen to 30 basis points, far below its 2012 peak of 113.7 basis points.

Here is Christine Lagarde of the IMF at yesterday’s international global finance summit in Washington DC saying “Gooble Gobble, one of us.”

[whitedog57]

Freaks indeed!

[muir_redwoods]

And gold is up $19 and change. Go figure.

[Carpe Cerevisi]

Man, that was a scary movie!