No Bull: Could the 10-Year Note Hit 1%?

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In the wake of Friday's disastrous jobs number, 10-year Treasury Note yields finally fell through the 1.5% level, trading as low 1.44% on the day.

That plunge took many traders, talking heads and politicians by surprise.

Our "leaders" in Washington D.C. were heard to say: "Nobody saw this coming."

Well, that's just not true. Not one iota.

If you've been reading Money Morning you saw this coming. So did tens of thousands of our Money Map Report subscribers.

I've been warning that 10 year yields would drop below 2% then hit 1.5% for more than 2 years now.

In fact, our readers had the opportunity to profit handsomely on our bond related recommendations that have earned them 30%-71% so far.

What does this mean for you?

First questions first...

Now that we've busted 1.5%, the next stop is 1%.

I can even see negative yields ahead, meaning that investors who buy Treasuries will actually be paying the government to keep their money.

Be prepared. I'm going to show you here what to do and - yes -how you can profit from this move-- even at this stage of the global financial crisis.

Why Bond Yields Will Continue to Fall

First off, 10-year yields dropping to 1% means several things:

  • Bond prices go even higher. Rates and prices go in opposite directions. Therefore when you hear that yields are falling, this means that bonds are in rally mode.
  • The world is more concerned with the return of its money than the return on its money. You can take your pick why. Personally I think it comes down to two things above all else: the looming disintegration of the Eurozone and the fact that our country is $212 trillion in the hole and warming up for another infantile debt ceiling debate instead of reining in spending.
  • More stimulus. Probably in the form of a perverse worldwide effort coordinated by central bankers as part of the greatest Ponzi scheme in recorded history.
But zero percent or negative yields - right here in the US of A?

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