[palmer]

Yeah, because when you buy a 2 year note at 99.92 with a 0.625% coupon, you've got a lot of upside potential.

Another thing I forgot to mention is that people with foreign currencies can do this when the dollar is about to look like a "safe haven" against whatever their currency is. Then it is simply one more speculative trade on top of the speculation on the Fed's role. Suffice to say that speculative trades like that don't add to the economy and actually create more systemic risk when they all unwind.

[Toddsterpatriot]

Another thing I forgot to mention is that people with foreign currencies can do this when the dollar is about to look like a "safe haven" against whatever their currency is.

So it's not just the Fed propping these up? Thanks. LOL!