I was traveling this weekend, providing me with plenty of windshield time, listening to talk radio. If I got paid a nickle for each time I heard that that U.S. debt was going to be downgraded and interest rates were going sky high, I would have had several bucket fulls of nickles!
CLICK ON CHART TO ENLARGE
The chart on the right (30-year yield) reflects that yields have remained inside of this falling channel for the majority of the past 20 years.
The media and pundits have done a great job of expressing of late that yields were going to go higher due to a potential downgrade of U.S. debt, yet the facts remains at this time investors around the world are not only comfortable with the debt, they WANT MORE….. as buyers are driving yields lower, breaking key support of late.