talk about a credit crunch...

[deejayoh]

$TNX is down to 47.73 today. Definitely a flight to quality going on. More like a bull rush. This was threatening 52.50 a few weeks back.

[TJ_98370]

DJO

Humor us less enlightened folks. Ten year treasury notes being down is significant, why?

[deejayoh]

Lower yield =higher bond prices, which implies greater demand.

If risk on corporate securities (AAA) is considered to be low, you have a pretty low spread between treasuries and AAA.

What we are seeing now is the spread opening wide - because perceived risk of corporate debt is going up, due to selling of corporate debt and buying of treasuries.

[deejayoh]

[rose-colored-coolaid]

.

<sarcasm>
It's good that all housing is local. Otherwise I might suspect that the death throes of credit might apply downward pressure on our faltering housing market. I'm just glad that all the young workers at Microsoft and Boeing make $150,000 a year, so our median housing price is really quite justified.
</sarcasm>

[deejayoh]