Bond Vigilantes Strike Again – Not - See the Financial Times on 10 Year Treasuries

History Does Repeat Itself

Here is the story from today’s Financial Times on interest rates in the U. S. Bond Market.

10-year US Treasury yield falls below 3%

By Michael Mackenzie in New York

Published: June 1 2011 15:54 | Last updated: June 1 2011 16:09

The yield on 10-year Treasury notes fell below 3 per cent on Wednesday, a new low for the year, as weak economic reports suggested the US economy is mired in a ‘soft patch’.

.and here is a story from the FT over two years ago

Yield on 10-year Treasury debt below 3%

By Aline van Duyn and Michael Mackenzie in New York

Published: November 26 2008 18:41 | Last updated: November 26 2008 18:41

Financial markets notched up another historic milestone on Wednesday as the yield on 10-year US Treasury debt fell below 3 per cent for the first time in 50 years.

The decline in yields – to a low of 2.98 per cent – comes in response to unconventional policy measures taken by the US Federal Reserve this week aimed at pushing short-term and long-term interest rates lower

Expect Republicans to talk some more about how if the U. S. does not cut its deficit by making devasting cuts in government programs which benefit the old, the young, the students, the elderly and the ill, the bonds market just will not tolerate buying U.S. debt.