10YR at 2.44% - Stocks Falling

The ten year treasury represents Return free risk. No rational person would invest for ten years @ 2.44%. This must be money looking to trade(hedge funds), and represents positions that will liquidate if rates start heading higher...

Also in keeping with my theme that we are not dealing with deflation(setting aside the ongoing discussion regarding asset price declines and credit deleveraging), a person investing is getting a negative real rate of interest. And for those new to the discussion the CPI under reports inflation by factoring it out using hedonistic effects, substitution effects, geometric averages and saying food and energy doesn't count...

Foreigners have already shifted their buying away from Treasuries to other currencies, assets.

sorry redbaiter, but this yield expresses the complete risk aversion sought by many investors

capital preservation is the current ambition..

welcome to japan

the clock is ticking for stox and real estate

best case they are flat for a looooong time

Rediculous and absurd. Why take duration risk for 2% after tax and subject yourself to market risk. If you're not being paid to take duration risk, you can achieve the same preservation of capital in a zero rate t-bill.

Because deflation is real.

duration risk is accounted for in our lovely yield curve--that's why one can own two year notes that yield a healthy .47%--at these levels if you want to earn (before tax) 100k per year, you'll need to own > $27 million dolars worth of two year notes!!

as ridiculous as it may seem to you, redbaiter, treasuries, which provide capital preservation and avoidance of deflation, are quite expensive, ie they have been bid up. this is based on the wisdom of the market, a force much smarter than me....or you...or a buncha hedgies

like i said, welcome to japan

My wife was completely happy to open another savings account at .25% having just blown through another $500k FDIC an another institution. When my wife is happy to earn .25% and not buy NYC re for another year, NYC re is so so so fked.