Chart Of The Day: Treasury Bonds - John Rothe | Portfolio Manager, Quant, Tech Geek, And Sometime Superhero To My Kids

Chart Of The Day: Treasury Bonds

via: Chart of the Day

For some perspective on all-important long-term interest rates, today’s chart illustrates the 26-year trend of the 10-year Treasury bond yield (thick blue line).

Ongoing concerns over Europe in addition to a struggling global economy have encouraged investors to move a portion of their investment dollars to the relative safety of the US. This has resulted in a significant decline of the 10-year Treasury bond yield. In fact, the 10-year yield has declined a fairly dramatic 360 basis points (i.e. 3.6%) since the peak of the credit bubble and has been critical for the restructuring of the debt incurred during the credit bubble.

In the end, this decline has brought the 10-year Treasury bond yield right up against resistance of its 26-year downtrend channel.

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