Yields on long-term government debt decreased to record lows on Friday, November 28. The rate dropped to 3.43% on 30-year and 10-year dropped below 3%; both of these rates are the lowest since the government has been issuing them. These low rates show that investors are still very careful, a feeling that will probably continue into December. Even with the low rates, there are still a lot of reasons to buy treasurys, they are every safe and secure, especially in a time where future economic data is, “probably going to be nothing but bad news.”
On the other hand, Bank-to-bank lending rose for the second day straight. An increase in such rates can have a greater impact on the entire economy, effecting both businesses and consumers.
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