Treasury yields set record lows on fear Fed’s cut won’t suffice

Bloomberg/Liz McCormick/3-3-2020

“Treasuries surged as traders bet the Federal Reserve’s emergency rate cut might not be enough to prevent the coronavirus from chilling the U.S. economy. The rally drove yields on benchmark 10-year notes down 14 basis points to a record low of 1.02%.”

USAGOLD note: Stocks’ immediate reaction was to view the rate cut as an admission that something was wrong – perhaps very wrong – with the U.S. and global economies.