3-Month Treasury Yields Effectively Hit 0, Gold Soars

A massive global rally in treasuries is underway, and gold may be headed for its biggest one-day advance in history as global systemic distrust sets in.

Please see Global Financial Seizures Continue, Gold Soars for more details.

US Treasuries


Chart: Bloomberg

Interest rates can only go as low as zero. This may be as close as we get.

Gold Daily Chart



The above chart is as of 1:00 p.m. Central, and is courtesy of BarChart.

The Fed is desperately attempting to free up the system with mammoth injections of short-term repos. Only one problem: No one trusts anything but treasuries and gold.

Inquiring minds may wish to consider Treasury Bull Alive and Kicking for a discussion of which asset classes are likely to do well in a deflationary crash.

Gold stocks are soaring, including Goldcorp (GG), Newmont Mining (NEM) and Barrick Gold (ABX).

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