Treasury prices relative to G7 at cheapest in 4 years

|By:, SA News Editor

The U.S. 10-year Treasury  yield of 2.62% is 72 basis points higher than that of the G-7 average, the largest spread since April 2010, according to Bloomberg.

Earlier this morning, the yield on Spanish 10-year paper fell below that of Treasurys, also for the first time since 2010.

Trying to come up with a reason other than sheer madness, analysts point to the divergence of monetary policy between the U.S. and Europe, noting the ECB last week cut rates and hinted at QE, while the U.S. is tapering and eyeing rate hikes as soon as mid-2015.

ETFs: TBT, TLT, TMV, TBF, EDV, EU, TMF, TTT, BWX, BNDX, ZROZ, SBND, TLH, DLBS, VGLT, UBT, PLW, IGOV, GOVT, TLO, ITLY, TENZ, ITLT, LBND, TYBS, DLBL