The record low 30-year long bond yield intraday was on August 28, 2019 at 1.907%.
On a closing basis, the record low was 1.94%.
Those records are poised to fall due to a slowdown in shipping coupled with the coronavirus.
As noted earlier today, there is Little Chance of Coronavirus Containment in South Korea.
And in China, Half the Population of China, 760 Million, Now Locked Down
From an economic standpoint, January saw the Largest Shipping Decline Since 2009 and That’s Before Coronavirus impact hit.
There is no coronavirus containment. Bond yields will fall.
I expect a surprise rate cut at some point. This combination adds fuel for a further rise in the prices of gold.
In case you missed it, Gold at Record High in Euros. A record high in US dollars is also coming up.
Mike “Mish” Shedlock
Canada’s central bank is the only one among the major economies which owns no gold reserves.
If gold has no use in fiat economies, why would central banks care what price it is… unless they are accumulating? Which begs the question why would a fiat economy acquire gold if the currency is not gold-redeemable. One reason might be they are worried about gold replacing their fiat money…
It’s a competitive store of value they can’t make out of nothing.
“I expect a record low yield shortly.” Well that was a good call.
While the Fed’s balance sheet increase has leveled-off for the last eight weeks, seemingly having fixed the “Repo” interest rate problems, the sheets of other major center banks, (ECB, BOJ, PBOC, etc.) continue to significantly expand – especially due to the effects of the coronavirus. Simply put, much of this increased money availability is finding its way into US bonds, stocks, $US and gold.
Hope you’re right about gold, but I suspect manipulation in prices if it gets too high. CBs never want the price of gold to skyrocket.
Almost at 1/1/1 . My prediction will come true much sooner than even I expected. We will get a bounce if Coronavirus slows.
Go look at Canada’s: 10 Year is lowest yield @ 1.31 and the top rate is the 6 month @ 1.64. The 30 year is in the middle.
Canada’s central bank is the only one among major economies that owns no gold.
Like virtually all banana republics soaring govt deficits are being hidden off balance sheet by shady sham accounting and blatant fraud.Half a trillion dollar MONTHLY deficits are baked in by Q4,but,but ,but almost like magic the fiscal year deficit will clock in at …..$1 trillion and change!!!!!Where did the other $3plus trillion go?????
Reply to Mish
10 year Treasury Inflation Protected Securities are still only pricing in about 1.6% of inflation, and 30 year 1.8%. PPI up, other inflationary pressures creeping in, slowing global economy, will be interesting to see how these perform.
Reply to Mish too (commenting box is gone) : the best hedge these days against global problems is TESLA , forget gold , buy tsla now, before it s too, rrmm… late !
How does one post to the main article? Seems the only option is to reply to other comments. Any views on gold stocks?
Yes, it’s been like that for me for a while now.