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Barry Ritholtz

Why Isn’t U.S. Taking Advantage of Low Rates?

The decline in yields on U.S. debt is a great opportunity for the country to borrow and invest in its infrastructure.

The recent chaos in emerging markets has driven investors into U.S. Treasuries. The flight to safety has helped push down interest rates, with the yield on the 10-year bond now 2.6 percent. Although that is higher than the 1.5 percent of last summer, it is considerably lower than the 3 percent the 10 year yielded last month.

This decrease in rates creates another opportunity -- perhaps the last one for this rate cycle -- for Uncle Sam to borrow. A broad assortment of long-term projects requires attention and low rates make it the ideal time to renovate America's decaying infrastructure.