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Friday, September 9, 2011

Unprecedented Times... Treasury Edition

Last August (2010), I outlined why I thought those claiming Treasuries were in a Bubble was Blasphemy, but even I didn't expect how much more room there was for Treasuries to run.

Reuters details:
Treasury debt prices rose on Friday, taking benchmark yields to the lowest in at least 60 years as investors looked for a safe haven on revived worries a European debt crisis could have a significant global impact.
Note the "at least" 60 years. The chart below shows the ten year Treasury yield over the last 110 years combining monthly data from Irrational Exuberance and daily data from the Federal Reserve once available.



The 1.91% reached today appears to possibly have been, a new all-time low (assuming there was no intra-month low pre-1962 lower than the end of month print).