Yield, Varlet

The ten-year auction today priced at a new record low yield, 1.622%. Producer prices this morning showed a decline, not entirely surprising when the year-old decline in commodity prices and the weakness in retail sales are taken into account. The ultimate safe-haven currency for Europeans is the Swiss franc, now pegged to the Euro by the SNB to prevent the price being driven sky-high by panicked buyers fleeing Eurozone banks. The consequence of the inflows is that Swiss interest rates are now negative all the way out to 5 years. So the more the Swiss government borrows, the more money it makes. Yippee!

Could the US follow? Not likely, but not impossible either. Consumer prices tomorrow.

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