Well we should all be in the 5's NOW!!
Treasuries surged, sending 10-year note yields below 4 percent for the first time in more than two years!!
Bonds rose as U.S. stocks fell and oil rose to within 71 cents of $100 a barrel. The spread, or difference in yield, between two- and 10-year notes widened to the most since early 2005 and the Federal Reserve may have to lower interest rates again even as inflation accelerates.
A steepening of the so-called yield curve suggests investors are buying shorter-maturity debt in anticipation of interest-rate reductions by the Federal Reserve.
Three-month U.S. Treasury bill yields have dropped 34 basis points this week to 3.07 percent. The one-month bill yield has declined 37 basis points to 3.46 percent.
Former Fed Chairman Alan Greenspan told a business forum in Toronto yesterday that the housing slump in the world's largest economy will curb attempts to revive the credit markets. Ahhhh....Greenspan!
Here's to the rate cut on December 11th!