Tuesday, December 2, 2008

Treasuries Drive Still Higher

U.S. treasury futures continue to drive still higher, pushing interest rates lower. This is a great bull run for treasuries as shown on this daily chart, and Fed Chairman Ben Bernanke yesterday promised to continue buying treasuries to drive interest rates down and inject more liquidity into financial markets. Despite a higher stock market today, investors worried about economic prospects continue to bid treasury futures even higher.