Posted on 02/25/2020 12:15:38 PM PST by Mariner
The 10-year Treasury yield fell to a record low on Tuesday as coronavirus fears raised concerns about global economic growth and sent investors scrambling into the safety of U.S. government bonds.
The yield on the benchmark 10-year Treasury note fell about more than 6 basis points to 1.312% during morning trading, below its previous record low of 1.325% set on July 6, 2016 in the aftermath of the United Kingdom’s Brexit vote.
The yield on the 30-year Treasury bond tumbled more than 3 basis points to a new all-time low of 1.798%. The long-duration rate has plunged about 40 basis points this year. Bond yields fall as prices rise.
A sharp rise in cases of the new coronavirus in Italy, South Korea and the Middle East sparked fears of a global pandemic that will slow the world economy, sending investors running for cover.
“Price action in assets generally over the last two days suggest that finally the market is pricing in a growth impact from Coronavirus,” Priya Misra, head of global rates strategy at TD Securities, said in an email to CNBC.
(Excerpt) Read more at cnbc.com ...
Mortgage rates track closely to the 10yr bond.
VA lenders this morning quoting 2.875% for 30yr fixed.
good time to borrow a ton of money in order to....... pay it back.
I closed my refi last month at 2.98 and thought I was slick!
I’m telling everybody I know to jump on this opportunity.
Look for 2.5% by the end of the month.
Put differently, the price of the 10 yr Treasury was bid to record highs in a flight to safety.
The Federal Reserve needs to lower interest rates.
They are manipulating the short term market and keeping rates way above what the free market would charge.
https://stockcharts.com/freecharts/yieldcurve.php
It’s DEMAND that is in the driver’s seat right now.
These low yields are astounding. Still, money worldwide continues to pour in.
He said, "Watch the yield on the 10 year Treasury bonds. If it drops below 2...we're screwed."
It had been hovering in the 3.9 - 4.0 area.
And now it's at 1.33. Why? Because of some seemingly irrational fears on Wall Street about the latest Sino-virus.
Makes one wonder why credit card rates are as high as 20+%.
I do see many auto companies finally lending at 0%
It’s been below 2.0 for at least a year.
“Makes one wonder why credit card rates are as high as 20+%”
No collateral and people don’t pay their debts anymore.
Since 7/22/2019.
It’s lower than Brexit date.
Sold bonds to jump back into the market today.
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