Lower Interest Rates To Continue Longer; Barron’s

In Federal Open Market Committee meetings, indications have come that lower interest rates may be continued for an extended period. The central bank had earlier forecasted that the economic recovery is on track. However, growth seems to be faltering and inflation receding further which has resulted in reduction in 10 year treasury notes yield from 4% to as low as 3.15% in last month. As a result forecasts for interest rates are much lower for longer periods. According to Barron’s, the recent European debt crisis has boosted sales of US treasuries.