If you think the S&P drops 30% over the next 18 months, 1.04% looks like a decent parking spot.
Why would anyone want a 10 year “parking spot” at 1.04 for an 18 month stock correction?
Instead, you would buy a 3 Month Treasury, which is paying 5 basis points over the 10 Year, and you would re-invest every 90 days until the market calmed down.
The point I was making - only gamblers who think interest rates are going to continue to go down, only gamblers who plan to sell their bonds for a profit in the near future, are going to buy the 10 Year.
My Bottom Line - I think it is a really, really bad idea to have a monetary policy that encourages rampant speculation in America's 10 Year and 30 Year sovereign debt.