03/18/2010 05:12 am ET Updated May 25, 2011

Is This the Start of a Dollar Rally?

In the wake of the Dubai default (please see Dubai Defaults -- Deflation In Action -- Watched Pot Theory Revisited for details) I’m up watching treasury yields.Two-year treasury yields plunged to a new all-time-record low as the following Bloomberg table shows.Yield Curve as of 2009-11-27 12:22 a.m.On Monday Bloomberg reported Treasury Sells Two-Year Notes at Record Low Yield.  The Treasury sold $44 billion of two-year notes at a yield of 0.802 percent the lowest on record as demand for the safety of US government securities surges going into year-end.The last auction a $44 billion offering on Oct. 27 drew ...

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