That's where the problem lies.
* * * * * J B K * * * * *
San Francisco
Despite serious mid- to long-term concerns about U.S. debt, when there's trouble in the world, people still rush to the Treasury "safe haven." Recent troubles in Greece and elsewhere in Europe have intensified the focus on safety. "Investors still have a very high preference for default-free securities," said John Hussman, chairman of Hussman Funds.
Last week, even as the Treasury raised $126 billion, demand was so strong that yields actually fell sharply. The 10-year Treasury note's yield began the week at 3.78% but fell to 3.64% by week's end amid weak economic data, well-received auctions and overseas sovereign debt fears. It's now at 3.61%.
http://www.investors.com/NewsAndAnalysis/Article.aspx?id=522720
