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10-year Treasury yield drops to another record below 1.04% as historic fall in US rates continues
CNBC ^ | 02 March 2020 | Yun Li

Posted on 03/02/2020 5:25:59 AM PST by zeestephen

The 10-year Treasury yield dropped to another record low on Monday below 1.04% as the historic decline in U.S. rates continued amid the coronavirus outbreak and Wall Street calls for Federal Reserve stimulus.

(Excerpt) Read more at cnbc.com ...


TOPICS: News/Current Events
KEYWORDS: bondmarket; covid19stockmarket; debtbomb
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1 posted on 03/02/2020 5:25:59 AM PST by zeestephen
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To: zeestephen

And I can remember my grade,school passbook savings account that paid 4% in 1958.


2 posted on 03/02/2020 5:28:27 AM PST by buckalfa (Post no bills.)
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To: zeestephen

Does this mean little ole me can borrow money and I will be paid soon ???


3 posted on 03/02/2020 5:30:46 AM PST by no-to-illegals ( Liberals, leftists, Rinos, moslems, illegals, lamestream media. All want America to fail and die)
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To: zeestephen

Must be the best time ever to own rental properties. Hot rental market. Cheap financing/refis. Plunging commodities prices over the past week will lower the cost of renovations.


4 posted on 03/02/2020 5:31:39 AM PST by montag813
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To: zeestephen

Time to refi your home!


5 posted on 03/02/2020 5:32:12 AM PST by DCBryan1 (Quit calling them liberals, progs, socialists, or democrats. Call them what they are: COMMUNISTS!!!!)
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To: zeestephen

This is indicative of the strength of our economy versus the rest of the world.

The world economies with greater reliance upon the Chinese recognize that the economic contagion will be more severe due to reliance upon China.

This is why we must continue to de-couple from China. Depending on a communist government must cease.


6 posted on 03/02/2020 5:38:29 AM PST by vg0va3
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To: vg0va3
So, a negative interest rate indicates a strong economy?
7 posted on 03/02/2020 5:39:55 AM PST by Chgogal (Never underestimate the stupidity of a DummycRAT voter. Proof: California, New York, Illinois.)
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To: zeestephen

Why would anyone buy the 10 Year at 1.04 when they can buy the 3 Month at 1.18?

The only possible reason is speculation - you think interest rates will drop further, and when they do, you can sell your bond for a profit.

Axiom: Interest rates and the price of the bond always move in opposite directions.


8 posted on 03/02/2020 5:40:25 AM PST by zeestephen
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To: Chgogal

So, a negative interest rate indicates a strong economy?


We have the best crappy economy compared to the rest of the world. In this case it is relative.

The interest rates can’t be raised, who is the biggest borrower?


9 posted on 03/02/2020 5:43:29 AM PST by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: no-to-illegals

Re: Does this mean little ole me can borrow money and I will be paid soon ???

Only if your legal name is U.S. Treasury.


10 posted on 03/02/2020 5:43:36 AM PST by zeestephen
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To: zeestephen

>>>Why would anyone buy the 10 Year at 1.04 when they can buy the 3 Month at 1.18

If you think the rate on the 3-month when you roll it over is going be less than 1.04%, it could make sense to have the 10 year.


11 posted on 03/02/2020 5:45:56 AM PST by oincobx
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To: zeestephen

This is a huge signal that the Federal Reserve should have lowered their rates a long time ago. The Fed is hurting the economy as usual.


12 posted on 03/02/2020 5:46:46 AM PST by Moonman62 (Charity comes from wealth.)
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To: Chgogal
So, a negative interest rate indicates a strong economy?

Apparently - and also - news flash - apparently the FED pumping in tens or hundreds of billions of dollars into the repo markets to keep it from collapsing, while the stock market is reaching ATH's, also indicates a strong, stable, economy and financial system.

13 posted on 03/02/2020 5:47:12 AM PST by NELSON111 (Congress: The Ralph Wolf and Sam Sheepdog s<how. Theater for sheep. My politics determines my "hero")
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To: zeestephen

This is a signal for the leftist lemmings to start crying “recession.”


14 posted on 03/02/2020 5:52:08 AM PST by I want the USA back (We have sunk to a depth where restatement of the obvious is the first duty of intelligent men:Orwell)
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To: Moonman62

>>>This is a huge signal that the Federal Reserve should have lowered their rates a long time ago.

How does lowering interest rates solve a supply side issue if not being able to get product out of China?


15 posted on 03/02/2020 5:56:35 AM PST by oincobx
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To: oincobx

How does keeping short term rates artificially way above the market rate help the economy?


16 posted on 03/02/2020 6:04:36 AM PST by Moonman62 (Charity comes from wealth.)
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To: zeestephen
plus there's inversions all over the place.

Date	        1 Mo	2 Mo	3 Mo	6 Mo	1 Yr	2 Yr	3 Yr	5 Yr	7 Yr	10 Yr	20 Yr	30 Yr
02/28/20 1.45 1.37 1.27 1.11 0.97 0.86 0.85 0.89 1.03 1.13 1.46 1.65

17 posted on 03/02/2020 6:15:07 AM PST by stylin19a ((2016 - Best.Election.Of.All.Times.Ever.In.The.History.Of.Ever))
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To: oincobx

No rational person could possibly believe that a 1.04% annual return for ten years would be a good investment.

You can stay in cash and get 1.3% on an overnight sweep account.

The only people buying the 10 Year today are gamblers.


18 posted on 03/02/2020 6:20:40 AM PST by zeestephen
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To: DCBryan1

Im refinancing my Moms house right now. We have been successfully riding an adjustable loan on our home for 15 years. Just got our adjustment letter last week and we are getting a nice payment reduction.


19 posted on 03/02/2020 6:29:41 AM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: Chgogal
"So, a negative interest rate indicates a strong economy?"

It is first important to understand what is negative on the 10 yr treasury. The coupon rate is not negative. The yield is negative.

There is a huge difference.

This is supply and demand. If the coupon rate is set and people are willing to get a negative yield that is due to so many people bidding up the price and driving down the yield.

Here is an explanation

Bond Yield Rate vs. Coupon Rate: An Overview

A bond's coupon rate is the rate of interest it pays annually, while its yield is the rate of return it generates. A bond's coupon rate is expressed as a percentage of its par value. The par value is simply the face value of the bond or the value of the bond as stated by the issuing entity. Thus, a $1,000 bond with a coupon rate of 6% pays $60 in interest annually and a $2,000 bond with a coupon rate of 6% pays $120 in interest annually.

I hope that helps.

https://www.investopedia.com/ask/answers/051215/what-difference-between-bonds-yield-rate-and-its-coupon-rate.asp

20 posted on 03/02/2020 6:51:23 AM PST by vg0va3
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