Thursday, August 18, 2011

10 year below 2%

Joining the list of indicators that are at or near 09 levels, the 10 year Treasury Yield fell below 2% today!

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For context, today headline CPI Y/Y was reported at 3.6%.  Even core CPI is running at 1.8%.  This means that if you believe the rate of inflation is unchanged from here, purchasers of US Treasuries are lending to the US government at a negative real rate for the next 10 years.

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