Perhaps more important the U.S. 10 yr. bond, which closed at a new low yesterday, of 1.88%, is now trading at 1.79%.
Was 2.2% 2 months ago!
The twist is working!
Kind of...
Pretty sure this qualifies as falling from the sidewalk, into the gutter.
(assumes a prone, passed out drunk posture, as a starting point)
(it may not hurt much, but you can’t get much lower)
I used to wonder if the Fed could ever get more stupid. But they never seem to disappoint. Taking long rates down just digs a deeper hole. We are never ever ever going to pay back those 10 years (never mind 30 years) with paper worth anything close to today’s. The buyers will be lucky if we simply don’t default. So this bubble in long bond prices will certainly pop and the bigger the bubble the worse will be the effects of the pop.