January 10, 2010
Gang that is an unreal sight to behold but the 1-3-6 Treasuries which you know this site monitors persistently is telling us quite a bit:
DURATION……….YIELD
1 Month……………….. 0.01%
3 Month………………..0.03%
6 Month………………..0.13%**
**-Record LOW yield for this maturity.
With the surge in volume into the gold contract, massive drop in the US Dollar Index today and the ongoing rumblings about a second stimulus, health care bill and cap and trade legislative ideas being tossed about the USD is poised to tank as billions of dollars are reconfirming a concern about a return of capital as opposed to a return on their investment. For all practical purposes those maturities have a negative yield when you use the BLS own CPI of 0.4% thus it does not take rocket science to confirm what the Main Street participants said in the article posted below this one and why foreigners do not trust this nation at this point in time:
The United States is NOT a stable place for long term investing at this time.
Tonight I’ll post part 2 of the Obamarket Special as some family events delayed my finishing it last night (sorry, I am married ya’ know). I’m sure I will have more to add about the 1-3-6 yields and the evolving situation in our equity and bond markets. One last thing folks; ignore the earnings reports and look at the last 4 years worth of revenue figures and that should tell you more about the status of our economy and this hope and change recovery than anything else. I fear that the revenue numbers on the top line will be disturbing, just like Lennar’s which I posted several days ago.
http://johngaltfla.com/blog3/2010/01/11/1-3-6-treasury-bill-alert-wow/
