The 10-Year Is Back Below 2%

Another strange trading day. The S&P 500 dropped as low as 1,992.44 which was a loss of 1.39%, but it’s recovered some since then. The major banks have been hit especially hard. The Financial Sector was down the most, although our own Wells Fargo ($WFC) was one of the better banks, meaning down the least. Small-caps are also feeling the pain.

But the real action has been in the bond pits. I used to think there was no way that bond yields would come back to their July 2012 lows. Those were multi-decade lows. Now I’m not so sure. The 10-year yield is back below 2%. The 10-year got as low as 1.89% today. The 30-year got down to 2.47%. The spread between the 10- and 30-year is now less than 60 basis points which it hasn’t been in five years. My favorite indicator, the 2-10 spread, is at a two-year low (but still far from pre-recession levels).

Crude oil is down yet again. The black stuff for February delivery got down to $47.55 per gallon.

Posted by on January 6th, 2015 at 3:24 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.