European debt crisis pushes rates lower
An auction of 2-year Treasurys sells for 0.769%, a record low, as many investors seek safety from stock market and currency volatility.
If nothing else, the European debt crisis is pushing U.S. interest rates substantially lower.
Today's evidence: a $42 billion auction of two-year Treasury notes produced a record-low yield of 0.769%.
The auction was accompanied by a drop in yields across the world of bonds. The 10-year Treasury yield was 3.16% at the end of the day, down from 3.23% on Monday and 3.66% on April 30.
That's great for homebuyers, if they want to buy. Bankrate.com put the national average rate for a 30-year fixed-rate at 4.87% today, close to the lowest rates of the year.
The rate on a four-year loan for a new car is 6.34%, down from 6.41% a week ago and 6.8% at the beginning of the year.
It's a disaster for savers. A six-month certificate of deposit earns 0.89%, down from 0.9% last week and 5.3% in July 2006.
Interest rates have declined as investors have sought safety and bought U.S. dollar and bonds.
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[BRIEFING.COM] S&P futures vs fair value: +3.30. Nasdaq futures vs fair value: +8.30. U.S equity futures show a slightly positive bias coming off last week's striking turnaround rally. Trading activity was fairly subdued in Asia and major European bourses remain closed following the Easter holiday.
Reviewing overnight developments:
- Asian markets ended mixed. Japan's Nikkei -0.03%, China's Shanghai Composite -1.5%, and South Korea's Kospi -0.3%. Hong ... More
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