November 26th, 2007
Big drop in Treasury yields today.? The 2Y went from about 3.01% to 2.88%.? Most believe a big part of the buying spree was large investors seeking to cover other investments they had made.? But that wouldn’t account for all of the reduction.? The 10-year dropped to levels not seen since March 2004.? It was down to 3.84%.
Some believe it is a further flight to safety from other investment vehicles.? The continued drop will make it difficult for the Fed to not decrease rates again on Dec. 11.
-- By +Chris Duncan