Posted on 09/28/2007 3:45:12 PM PDT by TheLineMustBeDrawnHere
Yields go down when investors flee to safety, because their comparison is riskier returns from equities. The drive for safer yields drives the treasuries basis down because of the inverted yield curve from bonds, google that please, my brain is severely fridayed, and if I told you where I thought it would play out in next year or 3 it would be even more suspect.
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