THE BASIS POINT

2011 Was a Great Year for U.S. Treasury Debt

 

There are no notable fundamentals today. As the year ends it is worth nothing that 2011 was a great year for Treasury debt and that lower Treasury yields drove mortgage rates lower.

The root cause was and continues to be EU concern. There will be no resolution of EU debt soon, and that will continue to drive US Treasury yields and mortgage rates even lower in 2012.

 

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Comments [ 3 ]
  1. Dennis The Menace says:
    January 8, 2012 at 6:50 pm

    I can imagine what will happen to the united states if china and all the countries and all investors the world over shun the dollar. Interest rates would rise enormously and the federal reserve would be forced to buy bonds from the treasury to fund the government and pay interest on all of the governments bills notes and bonds. When the buyers for united states debt obligations disappears the whole system will come crashing down. This is the type of thing that peter shiff has been warning everyone about when the ability of the united states to pay its debts becomes clearly in doubt all the buyers for united states debt securities disappears overnight.I believe that the united states treasury market is just another bubble waiting to burst.

    Reply
  2. Michael21 says:
    February 13, 2012 at 2:39 am

    Why would you ever want to own fixed income here vs. equities when the yields are this high for equities vs. debt? Esp. with interest rates where they are.

    Reply
  3. Michael21 says:
    February 13, 2012 at 2:39 am

    Why would you ever want to own fixed income here vs. equities when the yields are this high for equities vs. debt? Esp. with interest rates where they are.

    Reply

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