The debt crisis in Europe appears to have no solution and is causing investors to push interest rates for many countries to unsustainable levels. The demand for higher yield will hurt these countries as they attempt to issue new debt or roll over existing debt.
Stocks around the world are down this morning, including in the U.S. The DOW traded lower by over 300 points and is currently hovering near that mark. U.S. Treasury prices have improved; however, even U.S. debt is coming under scrutiny. Investors in U.S. debt are losing confidence in the country’s political system as the U.S. deficit panel failed to reach agreement on reining in the ballooning U.S. debt. The yield on the 10 year note hit a low yield of 1.95% early this morning and is currently at 1.97%. Mortgage prices are slightly improved from Friday.
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