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alp227

(31,962 posts)
Wed May 30, 2012, 09:46 PM May 2012

Europe’s Economic Troubles Push Investors Toward 10-Year Note

Source: NY Times

Unnerved once again by Europe’s economic problems, investors rushed to buy United States government securities on Wednesday, sending the yield on the Treasury’s 10-year note down to a record low.

Stock prices, meanwhile, fell sharply on Wall Street after a broad sell-off sent Europe’s markets down 2 percent or more. Analysts said the Treasury rally, as well as the selling in the European stock markets, was set off by new signs of weaker economic activity on the Continent.

“Almost the total focus on where the flight to quality is coming from is Europe,” said Kevin H. Giddis, the executive managing director and president for fixed-income capital markets at Morgan Keegan & Company.

“I did not think we would gain so much momentum over a very obvious issue that has no quick fix to it,” Mr. Giddis said. “There is a lot of cash coming in to U.S. Treasuries from everywhere.”

Read more: www.nytimes.com/2012/05/31/business/daily-stock-market-activity.html

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Europe’s Economic Troubles Push Investors Toward 10-Year Note (Original Post) alp227 May 2012 OP
If you haven't refinanced your mortgage yet... now is the time. FBaggins May 2012 #1
Yields are low on all 'safe haven' government bonds muriel_volestrangler May 2012 #2
Might as well keep it as cash. truthisfreedom May 2012 #3

FBaggins

(26,697 posts)
1. If you haven't refinanced your mortgage yet... now is the time.
Wed May 30, 2012, 10:22 PM
May 2012

If only it were an option for more people.

muriel_volestrangler

(101,154 posts)
2. Yields are low on all 'safe haven' government bonds
Thu May 31, 2012, 07:03 AM
May 2012

The US is just one of many:

The yield on the U.S. 10-year bond has just fallen below 1.7 percent. UPDATE: the yield has just hit 1.6713 percent, a brand new record low.
In Germany, the 10-year has fallen to a new record of 1.33 percent. UPDATE: And the German 2-year bond yield has now just fallen to ZERO.
U.K. borrowing costs have hit a record low of 1.73 percent.
In Finland, the yield on the 10-year is 1.624 percent. You guessed it, that's a record low.
Sweden: The 10-year yields 1.405 percent. Same deal.
In Australia, the 10-year has dropped close to a record low of 3.061 percent.
Canadian 10-year yields at 1.87 percent are close to a record low.
Japan's 10-year: 0.85 percent.
Swiss 10-year: 0.59 percent.

http://www.businessinsider.com/sovereign-bonds-falling-all-over-the-place-2012-5


Jeez, the UK is in a recession, and it's still got low bond yields. This amounts to "these governments really will pay this stuff back", but, as the British trade union economist Duncan Weldon argues, this does not mean that the British, or any other economy, is doing well, whatever the UK government argues.
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