Bond Yields Stay Low, Consumers As Bummed As They Were In 1980

At the close of a memorable week, fixed income trading has settled down. On the one hand, the S&P downgrade triggered the most volatile market in a year and precipitated the sharpest decline for stocks in three-years. In part its move prompted the Fed to pull a new card from its sleeve as it declared at least a two-year freeze on interest rate policy. The drama also weakened investors’ appetite for fresh government debt culminating in a weaker expression of interest at Thursday’s auction of long bonds.

http://www.forbes.com/sites/greatspeculations/2011/08/13/bond-yields-stay-low-thanks-to-lack-of-consumers-feel-as-bummed-as-they-did-in-1980/