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Economy Title: Two-year Treasury yield drops to a record low
NEW YORK (AP) -- Prices for Treasury securities jumped Thursday, sending the yield on the two-year note to a record low, as investors rushed to U.S. government debt in search of safety. Stocks tumbled around the world on worries that the U.S. economy is weakening and that Europe's debt problems are getting worse. The Dow Jones industrial average fell 513 points, its biggest drop since December 2008. The yield on the two-year Treasury note fell to 0.26 percent, a record low. Late Wednesday it was 0.34 percent. Bond yields fall when demand for them increases. That means traders are willing to accept smaller returns in exchange for investments they consider to be relatively stable. The yield on the 10-year Treasury note fell to 2.39 percent, the lowest level since October. That's down from 2.62 percent late Wednesday. Its price jumped $2.06 for every $100 invested. The 10-year yield is used as a benchmark for many other interest rates. When it drops, rates on mortgage and other consumer loans usually follow suit. The yield on the 30-year bond fell to 3.66 percent from 3.90 percent. Its price leapt $4.66 per $100 invested. Investors are becoming more worried as bad news on the U.S. economy keeps coming in. Economic growth through the first six months of the year was far weaker than economists expected. The U.S. economy grew at an annual rate of just 0.4 percent in the first three months of the year, according to revised figures released last week. Manufacturing grew in July at the weakest pace since 2009. And economists expect Friday's jobs report to show the unemployment rate remained stuck at 9.2 percent last month. "Most of us thought that the economic weakness was transitory," said Kim Rupert, managing director of global fixed income at Action Economics. "But after some of the weakness in the July data that we've seen recently, that has just added to concerns that `transitory' is going to be longer than any of us expected." Even if Friday's job report comes in better than economists expected, it may not be enough to end the worries, said Ward McCarthy, chief financial economist at Jefferies. "When you look around the world, there aren't a lot of places that are offering encouragement," he said. "This is a global event." European stock markets fell Thursday on worries that Italy or Spain may be the next country to need help from the European Union to pay its debts. Italy's main stock index fell 5.2 percent, and Spain's fell 3.9 percent. "I can't tell you how many people I spoke to today that had that same, distant stare that I saw in the September to December 2008 period," William O'Donnell, head of U.S. Treasury strategy at RBS Securities, wrote in a report. "It's that peer-into-the-unknown look that's quizzical and confounded." The yield on the three-month T-bill was unchanged at 0.01 percent. Its discount wasn't available. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest The yield on the three-month T-bill was unchanged at 0.01 percent. That might buy you a piece of bubble gum eventually.
#2. To: Skip Intro (#0) THIS IS ALL THE demonRAT's/Obammy's FAULT! ALL OF IT! THIS EXPLODING ECONOMY IS 100% YOURS bitch. TRY to SPIN it bitch! Because IT'S ALL YOURS bitch! Cue "the International" ... libertysflame.com/cgi-bin/readart.cgi?ArtNum=22709 Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms. #3. To: Fred Mertz (#1) Hey remora boy how do you like what YOUR wee little failed man child messiah "king" obammy has done with the US and world economy? Ain't he a "peach"? libertysflame.com/cgi-bin/readart.cgi?ArtNum=22709 (Cue "the International".) Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms. #4. To: Fred Mertz (#1) (Edited) The yield on the three-month T-bill was unchanged at 0.01 percent. This is profound, Mertz. And not readily intuited. The 3 Month T-bill now controls the Markets.
You want cash? The creditors with the 3 Month have it. And the 3 month can go negative, meaning you want one, You have to pay the Gov't for your security of cash on demand.
#5. To: mcgowanjm (#4) This is profound, Mertz. James, you can call me Fred. WTF are you doing up at this hour? Watching the Asian markets tank?
#6. To: Fred Mertz (#5) James, you can call me Fred. I'm sorry, Fred. I thought I was...my mistake...;} And yes. This clusterfuck is being Waaaay unreported. I've only seen one report of Italy suspending trade. Here's a Pole's view from ZH: "All eyes are going to be on Italy for now- I bet... But there are other things that can pull the old world down- over here in Poland it wont take much- If the Swiss Frank keeps appreciating against the Zloty there is going to be 700 thousand families out on the street- lotsa mortgages in swiss paper... If Fiat goes down with the ship and pulls back their plant here- 6000 jobless people in my town and the ones around it... Everywhere I look I see something just waiting to fall and burn because of the ripple effect from this shitstorm- and I bet its like that around the world... all of it is interconnected... Well hoorah for globalization!
#7. To: Fred Mertz (#5) And Fred, you can bet there's a lot of old Italians up late tonight trying to find shelter for this storm.
#8. To: mcgowanjm (#7) What storm? You are more on top of the news than I am, James.
#9. To: Fred Mertz (#8) What storm? You are more on top of the news than I am, James There's been the creation of $1.5 Quadrillion in Debt Derivatives since the ReaganGreenspanCommodities Act of 1982. The reason the Markets surged way back then and haven't looked back. Well, now they're looking back. There's maybe $6 Trillion in actual paper/linen dollars on the planet to match up with $1.5 Quadrillion. But there will be a Match up. The Storm will be how the Match Up happens.
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