Many experts predicted this would be the year of the bear for Treasuries, as the exploding U.S. debt burden and fears of inflation drove investors to other assets.
But that hasn’t been the case.
The 10-year Treasury yield has actually dipped 20 basis points so far in 2010, to 3.65 percent. (One basis point is equivalent to 0.01%, or one-hundredth of a percentage point.)
Remember that bond prices move in the opposite direction from yields.
The government has had little difficulty in finding buyers for the record amounts of bonds it is issuing — $2.1 trillion last year. (more)
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