Financial Times FT.com

Short View: Falling Treasury yields

By Michael Mackenzie

Published: November 26 2008 19:27 | Last updated: November 26 2008 19:27

Given the current climate, it comes as no surprise that US Treasury yields are at their lowest levels in decades and could well fall further.

The 10-year bond is called the market benchmark, as the note is frequently used to help investors manage their interest rate risk. Demand for hedging such risk has rocketed in the past 24 hours, since the Federal Reserve announced it intends buying upwards of $500bn in mortgages.

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