Yes, we're looking more like Japan every day

Deflation here we come.  I'm glad I moved to long-term treasuries:

At today's close:

U.S. Treasuries:

3-Year:   0.79
5-Year:   1.45
7-Year:   2.13
10-Year:  2.76
30-Year:  4.01

I think the only way to stop this slide is extremely aggressive monetary and/or fiscal policy.  I don't think that's going to happen.

So, how low will rates go?

My armchair guess is that 10-year treasuries will fall below 2.0 percent before this is over.  But I really don't know.


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