Will Treasury Rates go to Zero?

Yields on U.S. Treasury notes and bonds declined precipitously today. The yield on a 10 year Treasury fell to 2.70% while the 30 year fell to 3.21%. This means that you can buy at thirty year U.S. government bond at a return of 3.21%. Yields on shorter maturity bonds (less than five years)are 1% or lower. The Federal Reserve will meet in two weeks and probably lower the Federal Funds rate to 0.5%. This means that taxable money market funds will be paying about 0.0% on your money. It seems to me that the markets are worried about risk and deflation. The market is acting as if all stock market dividends will be eliminated and all corporate bonds will seize to pay interest.

Random thoughts...the market acted horribly today and better improve tomorrow....we need time for some of these government plans to work....Black Friday sales were better than expected...the consumer has money to buy a 'great deal'...only fifty days until Obama is President....