That’s the average annual yield on the benchmark 10-year Treasuries, and it’s the lowest average on record.
Congress is coming back today, looking to find a solution to avoid more than $600 billion in tax increases and spending cuts that start Jan. 1, the so-called fiscal cliff. The American public and the financial markets are growing less confident that lawmakers will manage to pull something off before the deadline, with fewer people telling Gallup pollsters they expect a deal and stocks moving lower for three straight days.
And that concern is pushing the yields on Treasuries down. The 10-year yield compares with the average of 3.66 percent for the past decade.
“We’re coming to the edge of the cliff, and time is running out,” Larry Milstein, managing director of government-debt trading at R.W. Pressprich & Co., told Bloomberg News.
With assistance from Daniel Kruger and John Detrixhe