The 10 year has dropped below 2%.  The 2-10 spread is back down to 1.67.

The continued negative territory in the tips must be offensive to any mortal.  I’m really not sure the purpose of negative real yields.  Other than the fact the investors are simply paying the the US government to carry their goods.  Does the GLD even carry such high expense ratios?

Investors clearly favor treasuries, yet the treasury continues to push the value up further.

This anomaly seems to be even more confusing the inversion we previously had.  I’ll stick to 55 equity 45 fixed for now.


Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: