The spike in M2 money supply can be explained by the massive fiscal stimulus deployed by the federal government, which was financed in large part by the creation of new money by the Federal Reserve, according to research by Guggenheim Investments. As the money continues to flood into the private sector, there is a continued rise in stock and bond prices. Over time, as stimulus payments and tax refunds are distributed and more money looks to be put to work, investors will extend maturities on their bond portfolios in a reach for yield, the report asserts. Against this backdrop, two-year Treasury note yields could go to 1 basis point or lower, and five-year Treasury notes could easily reach 10 basis points. These levels would put downward pressure on 10-year Treasury rates, likely rendering the current yield unsustainable. With rather benign inflation and easy money, taking on duration risk to get any reasonable return on cash will prove a temptation too great for fixed-income investo