Low rates for you!

As we noted yesterday, when you want to lend or invest money, yields these days are very skimpy. Well they just got a whole lot skimpier after the 35-day bills sold by the Treasury to fund the extraordinary bailouts underway at a yeild of just 0.05. That’s right, Japanese-style interest rates.

EUR/USD and Cable are jumping, perhaps on the low yields. A US custody bank is said to have bought a very large slug of cable in the last little while.