Three-Month Treasuries are now yielding an unbelievable 4 basis points. That means a $10,000 investment will get you a whopping $4 per year. Before equity markets opened today, the yield was at 0.23%, and it continued lower throughout the day. As shown below, the yield hasn't been this low since the 1930s. Investors have clearly lost faith in pretty much every asset class except for government-backed bonds. And who knows how long that faith will last.
In the bottom chart we highlight the yield curve, which was inverted at the start of 2007. Now the curve has moved back to the top of its historical range since the 1960s.
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