Treasury Bubble Watch

Test Ticker

Please support Mother Jones with a year-end donation. The truth is, we're a long way from our $600,000 goal, and we have to get as close as we can by Tuesday so we don't have to make hard decisions come January. If you value our reporting, please consider pitching in today.

$600,000

We still need to raise 400,000: Whether you can give $5 or $500, it all matters.

Please support Mother Jones with a year-end donation. We need to raise $600,000, or get as close as we can, by Tuesday so we don't need to make hard decisions come January. Whether you can give $5 or $500, it all makes a difference.

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.

TREASURY BUBBLE WATCH….Is the appetite for treasury bonds with minuscule yields finally waning? The Wall Street Journal reports:

Time and again the U.S. Treasurys market has escaped the correction many believe is inevitable for a market that is so buoyant, it could be mistaken for a bubble. This week, it may not be so fortunate.

Prices of government bonds started to fall Friday, ahead of the vote by the House of Representatives that approved the $789.5 billion stimulus package. This decline could be the beginning of the capitulation the market has been bracing for since the administration of President Barack Obama took over, with promises of a recession-era boom in government spending.

Personally, I wouldn’t read too much into this. But it’s something worth keeping an eye on. The treasury bubble is going to pop eventually.