Bond Yields Free Fall

I am not sure if I am reading this correctly, but it appears that yields are now back to where they were in the early 1960s on the 10 and 30 year.

Thirty-year Treasury bond yields fell to record lows for a third consecutive day after the Federal Reserve said it plans to make weekly purchases of the debt of mortgage issuers to drive borrowings costs lower.

Yields have dropped every day since the central bank announced on Nov. 25 that it will buy as much as $500 billion in agency and mortgage securities of government-sponsored enterprises including Fannie Mae. Gains accelerated two days ago, when Fed Chairman Ben S. Bernanke said he would consider buying Treasuries and target long-term interest rates to combat a deepening recession . . .

Ten-year note yields fell three basis points to 2.67 percent, near the lowest level since the Fed started keeping daily records in 1962. Two-year note yields were little changed at 0.89 percent.

Must be that savings glut Bernanke used to talk about . . .


30-Year Treasury Constant Maturity Rate
St. Louis Fed

Treasury 30-Year Yield Drops to Record Low With Fed to Buy Debt
Dakin Campbell and Daniel Kruger
Bloomberg, Dec. 3 2008

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