The chance of the US defaulting on its obligations is still hanging on the balance of tough, dug in negotiations in Washington. But the yields on US Treasury bonds have continued to fall. Apparently these bonds are still considered a safe haven. With falling nominal bond yields, and with 5 year inflation expectations still in the 2% range, the real yield on 5 year TIPS hit another record low today at -.72%
Time for a quick 5 year TIPS issuance.
