Although I personally loathe buying any treasury debt at this time, negative real interest rates on ten year bonds is a pretty unique situation. For the people who are buying treasury bonds is more important than the interest rate risk. The idea of the ten year bond closing the week at ”“0.02 tells me that the financial system has more money than good ideas so they settled for a secure, small loss idea. For the Treasury that this is a great time to extend the average maturity of our total debt and reduce the amount of debt that need to be re-financed when the interest rate goes up.
