With its top two competitors – the euro and the yen – now mired in negative-yield absurdity, investors are fleeing to greener pastures where yields are still higher. And the greenest pasture of them all with the most liquid government bond market is the US.
Foreign demand at the 10-year Treasury auction on Wednesday hit a record high of 73.6%, beating the prior all-time record of 73.5% in May. And they sold at a yield of 1.702%!
Why are investors – including central banks – so eager to buy this 10-year paper at this minuscule yield?
also:
Don’t miss ace analyst, Martin Murenbeld spelling out where gold’s going HERE
