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CNBC/Hugh Son and Dawn Giel/12-8-2020
“The yield on the 10-year Treasury was last at just 0.9% and has stayed below 1% since breaking below that threshold during the March pandemic collapse in stocks. Since bond prices must move inversely to yields, people like Dimon see little room for Treasurys to rally with rates already at such low levels.”
USAGOLD note: Difficult to understand why anyone would buy a yield instrument that simply does not yield a thing after inflation – except of course if you were speculating rates might go even lower. The last safe haven left standing in the zero rate environment looks to be gold – the one asset that is not simultaneously someone else’s liability.
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