United States Bond Demand Falls, Rates Climb, All Slightly

For those who had thought that buying United States Treasury notes was a bad idea--and frankly, it's not out of line given the current state of things--know that it's not an idea that's widely accepted. If you need any proof of that, all you have to do is look at the ten year note auction that just wrapped up.

Fresh news out of the Commerce Department about improved indicators pushed stocks up, and that in turn reduced the demand on ten year Treasury notes. This in turn hiked the yield on a ten year bond to 3.57 percent, up from 3.53 percent just a day earlier. And the price on a ten year bond is now running at $100.4375.

The two year note, by way of comparison, sells at $100.25 with a yield of .87 percent, meaning that the cost for the cash-strapped American government to borrow money is shockingly low. This is attributed to several factors, including the US dollar being regarded as the world's reserve currency, as well as the growing willingness of formerly consumer-oriented households to save, and thus, buy US Treasuries.

Safe? Certainly more so than a lot of other Treasuries. But worth the investment? That's a judgment call each investor must make.