Treasuries, the new bubble?

http://finance.yahoo.com/tech-ticker/article/138413/Treasuries-The-New-New-Bubble?tickers=TLT,C,HPQ,CAT,ED,PST,UDN

Treasuries: The New New Bubble?

Posted Dec 03, 2008 01:20pm EST by Aaron Task in Investing, Recession

Are Treasuries the next bubble? A lot of traders seem to think so after a sharp rally in Treasury prices sent yields down to their lowest levels in decades.

“There’s more risk in things people think are inherently safe, [including] cash and Treasuries, vs. the things people perceive as risky,” Jim Grant of Grant’s Interest Rate Observer said on CNBC this morning.

Before rising modestly Wednesday, the 30-year yield was at 3.197%, its lowest level since 1973 while the 10-year’s yield was below 2.7%. Even after rising a bit today, yields from 3-month to 2-year Treasuries are below 1%.

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