Incredibly Shrinking Yields
June 1, 2012    Disclosures    POSTED IN  InvestmentsEconomy

Today the 10-Year U.S. treasury note yield fell to 1.45%, an all time low. The previous record was set during World War II. With inflation muted and economic uncertainty around the globe, investors have continued to buy U.S. treasuries driving price the bond up and the yield ever lower.

The 30-Year U.S. treasury bond yield is currently 2.54%. Only 4.5 years ago, during January 2008, the 3-month U.S. treasury bill traded with a higher yield than the 30-year does today.

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While low interest rates have left investors searching for yield, falling rates have led to cheaper borrowing costs for the U.S. government, highly rated corporations and individuals with good credit.

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