Donald Trump may not have had much luck in getting the Fed to push down its interest rate target in recent months but investors on Thursday were happy to push down the rate the government pays to borrow.
The U.S. Treasury sold $19 billion of 30-year bonds with a yield of 2.061 percent on Thursday.
To put that in perspective, the Congressional Budget Office in January projected that the yield on 10-year notes would average 1.9 percent this year, 2.2 percent next year, and then march toward 3 percent by 2025.
In other words, just six months ago, banks were paying around the same rate to borrow overnight what the U.S. Treasury agreed to pay for a 30-year bond.
The low yield also raises questions about whether textbook economics has something wrong when it comes to budget deficits and interest rates.