US 10-Year Treasury Yield Hits Record Low of 1.65%

[dzwm87]

I don't think there is a need to offer bonds in Europe. Singapore's i/r is closely followed with the global rates. We are bound to be affected directly or indirectly.

[swakoo]

After the Great Depression of '30s, 10-yr US treasury stayed low for about 15 years.
Circumstances different now but wonder how long will it stay low after the Great Recession of 08/09?

[Image: chart.png?s=usgg10yr&d1=19120101&d2=20120731]

[CityFarmer]

Will it trigger company rush to offer euro bond, to tape into the capital market there?

1.65% is much lower than local corporate bond of AAA rating in Singapore

but you need bear foreign exchange risk, which could be much higher than just borrowing in SGD.

How about US$ settled bond in Euro? I had seen US$ settled bond in RMB, but no sure it is available in Euro...

[swakoo]

Bond yields sink below 2% in flight-to-safety bid

Jeff Gundlach, the CEO of investment services firm DoubleLine told Barron's that he believed the 10-year Treasury yield could test the 2012 low of 1.38 percent if the price of oil fell below $40 a barrel.

[Image: Yields.JPG]


United States Government Bond 10Y 1912-2015

[Image: united-states-government-bond-yield.png?...2=20151231]

back to the level of the 1940s?

[swakoo]

In a recent interview with FuW, DoubleLine's Jeff Gundlach explained his concerns about the oil market not being "unequivocally good" for everyone...

Question: The crash in the oil market is already causing jitters in the financial markets around the globe. What is your take on that?

Gundlach: Oil is incredibly important right now. If oil falls to around $40 a barrel then I think the yield on ten year treasury note is going to 1%. I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly – terrifying.

http://www.zerohedge.com/news/2015-01-05...terrifying

[Image: 20150105_oilcrisis_0.jpg]

[ValueMushroom]

With 10yrs treasury yield at so low, what is the instrument to buy if you expect treasury yield to rise?

[swakoo]

Bear in mind that though a sub 2% yield seems low, zero yield is not the minimum it can go to.

Eg. the 5 year Swiss govt bond yield...

[Image: Switzerland%2B5-Year.png]


Even though none of the 10-yr govt bonds have gone negative yet.....

[Image: switzerland%2B10-Year.png]

[Image: Japan%2B10-year%2Byield.png]

[safetyfirst]

With 10yrs treasury yield at so low, what is the instrument to buy if you expect treasury yield to rise?

Inverse etfs

Examples are

PRS UL SRT7-10YR code PST
PRS ULT SRT20+YR code TbT

Think they are both listed on the NYSE. There should be more ETFs that will rise when bond yields rise

[ValueMushroom]

Thank You swakoo and safetyfirst for the sharing.