Is The 30-Year Treasury Getting Too Cheap?

The 30 year has had a dramatic sell-off - you can see that the yield has moved from the March lows of 2.5% to the current 4.15% ; That’s been a tremendous move. Treasuries are starting to look real cheap here. at 4-5% yields.

Of course, the risk here in buying treasuries at this level is that the government is not able to stop or control the rates from running away. If rates continue to move significantly higher, then buying here may not be the best move. If it appears that the banking system is becoming more unstable, then perhaps we could see a run-away interest rate - as foreign governments opt to not invest in US Government Securities.

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