To really understand where we are in bond yields, let’s take a look at 112 year chart. This really puts things into perspective doesn’t it? Thursday, the 10-year Treasury Bond yield settled at a record low 1.706%.
The good folks at ChartOfTheDay.com added some support and resistance lines to define the current trend channel. By their calculation, there is still some more room to the downside.
This is happening at the same time that TIPS, or Treasury Inflation Protected Securities, are paying a record low negative yield. Buyers of these bonds are willing to accept a negative 0.391%. In other words, investors are agreeing to receive a smaller amount of money paid back at the end than what they originally lend out to the government.
Tags: $ZN_F $TNX $TIP