US yields continue to tumble

The Fed’s announcement that it will employ extraordinary measures to boost the economy has pushed US yields to breathtaking fresh lows this morning, down about 35 bp at the long-end of the curve. 10-year Treasuries yield 2.15%, down from just above 2.52% ahead of the Fed. Mortgage rates are tumbling as a result, which could provide immense stimulus for the economy when combined with the boost from lower energy prices. We still have a long way to go before digging our way out of this mess but the environment is gradually becoming more accommodative for Main Street as well as Wall Street.