Here is a chart of the 10 govt. bond yields, they are very, very low, yes they are to low. however you could say that at the start of the year and most of these bonds have rallied and gone higher (yields drop even further). The US should be higher however currently probably can go lower still, I mean look how low Italy, Spain, Greece yields are, sure not as bad and the ecomoies are recovering but still very low considering the problems they face.
even Japan is probably to low considering how they want to raise inflation and deflate their currency. anyways as long as these rates stay low the bull will continue. can we see a correction ie. 10% yes. however the bull will be intact, the sign of the end is when the credit markets start pricing in more risk....for now most investors will take their chances on equities instead of 10 year government paper.
thanks
selkirk
Ten year government bond spreads
Canada 2.33%
France 1.69%
Germany 1.37%
Greece 5.76%
Italy 2.72%
Japan 0.60%
Portugal 3.47%
Spain 2.60%
Switzerland 0.71%
UK 2.69%
US 2.61%
even Japan is probably to low considering how they want to raise inflation and deflate their currency. anyways as long as these rates stay low the bull will continue. can we see a correction ie. 10% yes. however the bull will be intact, the sign of the end is when the credit markets start pricing in more risk....for now most investors will take their chances on equities instead of 10 year government paper.
thanks
selkirk
Ten year government bond spreads
Canada 2.33%
France 1.69%
Germany 1.37%
Greece 5.76%
Italy 2.72%
Japan 0.60%
Portugal 3.47%
Spain 2.60%
Switzerland 0.71%
UK 2.69%
US 2.61%