Welcome Back! 5-Year Treasury Yield Sinks Below 2%
Bond yields continue to crash in response to seriously misguided US foreign policy.
Thursday evening, the 5-Year treasury yield slipped below 2% for the first time since November of 2017.
The short answer is Trump levied Tariffs on Mexico, demanding the country put an end to illegal immigration flowing into the US. Economic risks rose, thus bond yields fell.
Realistically, a recession was baked in the cake anyway. Trump merely sped up the process.
For discussion of Trump's action please see "Hello Recession".
Mike "Mish" Shedlock