datoid

The 10-year Treasury yield plummeted to 2.47% on August 4, 2011, falling 4.5 standard deviations below its 60-day average of 3.02%. This represents an extreme statistical outlier - such deviations occur less than 0.001% of the time under normal conditions. The sharp decline from 3.22% on July 1st to 2.47% reflects intense flight-to-safety demand amid market turmoil. Notably, this occurred despite record-low 4.30% unemployment and rising GDP, suggesting bond markets were pricing in significant economic risks not yet visible in employment data. What drove this unprecedented divergence between Treasury yields and apparently strong economic fundamentals?