Okay, thanks to the politicians in Europe, Treasury securities are on a roll. Just when you thought interest rates couldn’t get lower, they do a limbo.
How low can they go? Well, this morning the 10-year Treasury is trading about 9 basis points from it’s all time low. You’d have to go back to the Eisenhower presidency to duplicate current yields.
And remember what I told you after the first Greek ‘structured default’. The history of defaults in South America leads one to believe that a second default was a very high probability. Well, that probability is probably rising.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury