Treasury yields dropped on safe haven buying as worldwide stock and debt markets indicate the return of the “risk off” trade after a relatively optimistic April. This week’s news included: (1) Chinese manufacturing index indicating contraction; (2) US GDP for 1Q came in at 0.5%, below expectations; (3) Australia’s central bank unexpectedly lowered their key interest rate to 1.75%, an all time low. The 10 year T is down to 1.77% after hitting 1.93% on April 26 (way back when markets were expecting sustainable growth). The consensus is for the 10 year to trade between 1.50% and 2.00% for a while with only a single rate increase from the Fed for 2016. Stay Tuned. David R. Pascale, Jr.