As investors dump European stocks for the safety of bonds, the yield on the U.S. Treasury 10-year note closed Wednesday at 2.33 percent. That puts it just 3 basis points above its 52-week low. Bond yields move down as bond prices get bid up.
Of course, this wasn't supposed to happen. Before 2014 started, most economists thought this year that the 10-year yield would be somewhere above 3 percent toward the end of the year.
But with economic weakness in Europe and China, money is running toward the security of the bond market. Germany's 10-year bunds, for example, now yield close to 0.9 percent. Plus, the Federal Reserve now appears to maintain its dovish stance on monetary policy. All of those factors are in turn putting downward pressure on U.S. interest rates.
So how low can rates go?
"Combine that with global macroeconomics and strengthening dollar, we could see rates go a little lower," said Erin Gibbs, equity chief investment officer at S&P Capital IQ Equity Research.
"If we continue to see disappointing news coming out of China, more accommodative policy coming out of the ECB [European Central Bank] – regardless of the dove/hawk debate that we see within the Fed – that's going to continue push [U.S.] yields down and prices up," added Gibbs, who has over $13 billion in assets under advisory.
And if those yields dip any further, they could break through a very important level, according to the charts of Richard Ross, global technical strategist at Auerbach Grayson.
"We're at a very critical inflection point here," said Ross, a "Talking Numbers" contributor. He notes that yields are now testing its 2014 lows set in August and September near the 2.30 percent level.
A longer-term chart of the U.S. 10-year Treasury note reinforces the importance of current levels, Ross said. He sees three technical indicators converging around the 2.3 percent mark right now – the 200-week moving average, an uptrend from its 2012 historic lows, and a former resistance level that now serves as support.
That could me lower bond prices but the catalyst may not be good for stock investors, suggests Ross. "If we get a break below this key nexus of support, I think 2 percent makes a very inviting psychological target to the downside," he said. "That flight to safety – or perceived safety – in bonds would coincide with a more dramatic pullback in the equity markets, the likes of which we haven't seen for quite some time. "
Do you think we'll sees 2 percent before we see 3 percent on the U.S. 10-year? Tweet us at @CNBCNumbers
To see the full discussion on interest rates, with Gibbs on the fundamentals and Ross on the technicals, watch the above video.