Treasury yields dropped again yesterday, now down to 1.68 percent on the 10-year. Here's what I posted on lower rates just two days earlier.

I just noticed that treasury yields dropped overnight. In the case of the 10-year bonds by 1/10 of a percent to yield 1.73 percent. That rate is down 18.4 percent so far this month alone, which is stunning.

In my message preceding this one, I mentioned "...we are on the cusp of another rush into mortgage refinancings." That's looking even more probable now. It also means lower borrowing costs for miners who are able to get such funds from traditional sources.

Yep, I think the upleg in the commodities Super Cycle has resumed.

Now, some will ask why gold, silver, and other commodities would rise (in comparative terms) in an environment suggesting economic decline is upon us, or pending. There are two reasons.

1. As trust in the symstem flags, so does trusts in the (fiat) money, which increases the (comparative) value in things "real" that can be used in trade, especially commodities.

2. Then, in such periods, forward looking investors move their money to those areas which are most likely to recover first. When recovery begins, rising demand will first be seen in a rising demand for the industural commodies which will be needed to feed it.

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Also, I continue to see risk appetite returning - almost as a rush - to mining ventures in Canadian markets. Are lenders are becoming less cautious out of fear, or are they positioning for points 1 & 2 above?

By the way, do you still have your mortgage broker's phone number handy? You may want it soon.