This is a serious panic. Bloomberg informs us that rates haven’t been this low since 1954.

Click image for sharper view. Source: Bloomberg

Yields can go negative if people are desperate enough for a safe haven. In deflation negative nominal yields can be positive real yields. CPI went slightly negative in August. Expect significant price drops in everything over the next couple of years — including your own labor!

The long end of the curve still has plenty of room to come down. The 10-year should be 2% before long, and the 30-year could fall under 3%.  Anyone who thinks that lower yields are good for stocks needs to explain this:

30-year Treasury yield in blue, S&P 500 in red:

Click image for sharper view. Source: Yahoo! Finance

Welcome to the deflationary depression of the 2000s. Got cash?