As fear and undertainty over COVID-19 increase by the minute, it has sent yields for both municipals and Treasuries never before seen low levels — begging the question if we could see zero or negative yields here in the States.
This past week was a firestorm of complex events, with the end result being utter shock of how low we have come in terms of yields so quickly.
“I haven’t seen anything like what we have seen this week, or even today,” said Jim Colby, senior municipal strategist and portfolio manager at VanEck on Friday morning. “It is absolutely possible we can get to zero, or dare I say even negative yields here — it is just hard to tell when exactly.”
If Friday’s pace continues, that might not take long. The 10-year Treasury on Friday opened at 0.920% and it quickly dropped down to an all-time low of 0.660% before 11 a.m. ET.
(Read more: The Bond Buyer)
