30-Year Long Bond Yield Crashes Through 2% Mark to Record Low 1.98%

The bond rally continues this evening with the Fed in denial and Trump howling.

Futures are up a bit this morning as of 1:00 AM central following yesterday's massacre.

However, bond yields are again lower. The 30-year long bond just crashed through the 2% level for the first time ever.

Don't Worry

The Fed has everything under control.

So does Trump, the ECB, Bank of Japan, China, Canada, Australia, and New Zealand.

What can possibly go wrong?

Mike "Mish" Shedlock

Comments (27)
No. 1-11
Casual_Observer
Casual_Observer

Now 16T in negative yielding bonds. We havent even gotten started.

Ted R
Ted R

Let's see what stocks do today. Maybe the market will bounce back. Negative interest rates and a bear market in stocks don't mix well.

Maximus_Minimus
Maximus_Minimus

The bond market anticipating the return of the printing presses - and no return to normalcy in a lifetime.

Tater-tots
Tater-tots

Take a page from Mish and censor everyone you disagree with.

leicestersq
leicestersq

What happens when the tide turns?

Seems to me that if bond prices fall, then given all the rules out there for pension funds and other mutual funds, we might see a stampede, with forced sellers and few buyers.

What is the other possibility, that rates stay negative for ever? How can that happen unless central banks are always willing to buy bonds at negative rates of interest? If they do that, they have to inject more money into the system, and that will create inflation at some point. If inflation starts to take hold, negative interest rate bonds are going to become a fantastic widowmaker.