by Jerome a Paris
Tue Aug 2nd, 2011 at 04:27:56 PM EST
FT - German 10-year yields dipped below the domestic rate of inflation briefly on Tuesday, for the first time since at least 1960. Britain’s benchmark borrowing costs, as measured by 10-year gilt yields, fell to lows not seen since 1946. US 10-year yields hit new year-lows of 2.65 per cent.
Clearly the markets are telling governments they won't lend to them anymore, and they want austerity and less government spending. Right? Otherwise they wouldn't be selling bonds and pushing interest rates to record high levels... Oh wait.
(Imagine the cost of wind kWh if the investment were discounted at a 2.65% rate... We'd be entering 'too cheap to meter' territory...)