What About a 1….

What About a 1.25% 10-Year Treasury?

 
Treasuries rose to new heights Monday (23 January 2012).  New lows were set or tied for the interest rates at the market close for the 3-year at 0.28%, the 5-year at 0.57%, the 7-year at 0.93%, the 10-year at 1.47% and the 30-year at 2.52.  The 20-year?  That’s very close too, within a couple of basis points of tying its all-time low rate.  Just three weeks ago (7 July 2012) I discussed the liklihood that Treasuries would continue to be good portfolio holdings.  When I was writing that article the 10-year had just been trading with a yield of 1.67%.  If it continued with a similar move in the coming weeks the yield would fall to the 1.25% – 1.30% range.

Follow up:

Who’d of thunk that we’d see a decline of 20 basis points in three weeks.  The previous article was actually discussing the 30-year Treasury, not the 10-year.  That also has rallied strongly with the yield declining by 22 basis points from 2.74% on 03 July 2012 to a close at 2.52% yesterday (23 July).  Nowhere in the July 7 article did I predict such a sharp advance for bonds.

Read more: http://econintersect.com/b2evolution/blog3.php/2012/07/24/what-about-a-1-25-10-year-treasury

Advertisements
Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: