Playing Chicken With The U.S. Printing Press Is Making A Killing Today

happy turkeyYes, it’s a turkey.

U.S. 10-year treasuries continue to plummet as the bonds rally, and are just below 2.90% right now. The 30-year treasury yields just around 3.84%.At the same time, U.S. mortgage rates are hitting even lower new lows as a result. Freddie Mac reports that the average 30-year mortgage rate is just 4.58% today, after hitting record lows last week.

Many, including us, might consider that parking your money with the U.S. government for 10 – 30 years at current treasury rates is ludicrous, given the potential dollar weakness and inflation risks involved.

Blame this on a ‘Safe haven’ rally? Yet oddly gold is falling today. You’d think scared investors would go into gold before lending to Uncle Sam for 10 years. Whatever their reasoning, treasury bulls continue to laugh as this yield chart continues to plummet:


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