Here's another indication of what investors think about U.S. Treasuries these days: A $24-billion (U.S.) auction of 10-year Treasury bonds in Wednesday just sold for a record low yield of 2.14 per cent. In other words, investors like them, they really, really like them.
The previous record-low yield, according to Bloomberg News, occurred in January 2009. Meanwhile, investors continue to watch yields on plummet in the active market, with the 10-year yield falling to just 2.13 per cent on Wednesday afternoon.
It is now not far at all from the low of 2.055 per cent hit on December 30, 2008 during the financial crisis – though it briefly dipped below that level in trading on Tuesday, after the Federal Reserve released its monetary policy statement and unleashed widespread pandemonium in markets.
Next up: The U.S. Treasury will auction $16-billion worth of 30-year bonds on Thursday.
David Berman