Bond Bears Dumping Two-Year Treasuries Defy History

2y at 1% is a steal

http://www.bloomberg.com/apps/news?pid=20601087&sid=a5MX8Y3f1NfQ

 

2 year cd rates as high as 2.95% in north carolina.

 

yes but the big money cant invest in these. If pimco wants to deploy $10b, FDIC guarantees will be no good. CDs would be loaded with credit risk

 

Right. I have 7 bank accounts in cd's now.

 

you can check out some of municipal bonds, which I prefer. Texas has some 4.25% bonds are good.

 

Right, the FDIC is giving money away. Ally bank was paying something ridiculous a while back. Wamu was paying 5% before they failed

 

Return OF principal is more important than return ON principal.

 

Sheila Bair takes care of that

 

just ask all those Madoff clients...