Sunday, January 2, 2011
Just for the sake of putting things in perspective, here is a look at the last 85 years of 10-yr Treasury yields. The green line marks the 2010 closing level: 3.3%. It took a depression and massive deflation to drive yields lower, back in the 30s and 40s. I continue to believe that the relatively low level of Treasury yields today is an excellent indicator that the financial market is terribly worried about the ability of the U.S. economy to grow and prosper. That leaves plenty of upside potential for the optimists, of which I am one.
Posted by Scott Grannis at 10:26 AM