Bond yields near record low after auction

NEW YORK (MarketWatch) — Yields on 10-year Treasury notes touched a record low on Monday as prices rose, shrugging off the U.S. government’s first debt sale of the week at the lowest yield on record.

Shorter-dated debt has sold off while longer-dated yields have remained lower as traders bet on the Federal Reserve next week announcing a plan that would benefit long-term bonds.

Yields on 10-year notes , which move inversely to prices, fell to an all-time low of 1.87% during the European trading session as worries about Greece and European banks increased demand for the relative safety of U.S. government debt. They lately rose 1 basis point to 1.93%.

http://www.marketwatch.com/story/bo...ecord-low-2011-09-12?link=MW_home_latest_news

10yr´s below 2% ? Ha, ha, ha. What´s the inflation figure now in the U.S.? :eek:

 

Im not going to act like i know anything about bonds. Care to explain the situation?