By W Joseph Stroupe Both the US Federal Reserve and the bond markets have a vested interest in seeing yields on Treasuries of all stripes remain very low, and this is especially so when it comes to the longer-dated assets. Low yields tend to keep the costs for financing government spending low. Since quite a number of loan rates, such as home mortgages, are tied to the yield on certain Treasuries, low yields tend to bring down interest rates on key consumer and business borrowing, which then tends to liven-up seized credit. Holders of Treasuries, especially the longer-dated assets, don't want...
photo: AP / Charles Dharapak
Embedding disabled by request
