Thursday, June 24, 2010

Get Low, Get Low, Get Low, Get Low

Thanks to Lil Jon for the headline of the post... Peter Boockvar via The Big Picture details:

Outside of the late ‘08, early ‘09 panic into US Treasuries where the 10 yr yield got to 2.06%, the 10 yr bond yield is now at the lowest level since at least 1962 (as far back as Bloomberg goes) at 3.07%, breaking the June ‘03 level of 3.11% less than 2 weeks before Greenspan cut the fed funds rate to 1%.
Add high quality spread to the equation and we get an even lower figure. The aggregate bond index (i.e. the Barclays Capital Aggregate made up mainly of Treasuries, Corporates, and Agency MBS), which EconomPic detailed a few weeks back:
We have a new milestone to watch... the Barclays Capital Aggregate Bond Index (i.e. the most popular US dollar fixed income benchmark) closed at a mere 3.08% on May 21st. That is the lowest level EVER (well, at least since the benchmark's January 1973 inception).
Hit a new 2.94% low as of yesterday's close.



Source: Barclays Capital