Tag: treasury bonds

Posted on

Why Do Short-Term Bonds Yield More Than Long-Term Bonds? Who Would Buy Long-Term Bonds Now?

A couple astute observers noticed something about interest rates in my last video. If you missed that video, it can be found here.

Click on the image below to watch today’s short video answering the questions about why short-term rates are higher than long-term rates, who would buy long-term bonds in this scenario and what else does an “inverted yield curve” tell us about the economy? This one is a bit more casual as I wasn’t expecting to make a video today and threw it together fairly quickly. You’d be amazed at how much time goes into even a short video like this!

Enjoy!

 

 

 

 

 

Continue reading “Why Do Short-Term Bonds Yield More Than Long-Term Bonds? Who Would Buy Long-Term Bonds Now?”

Posted on

Bonds Haven’t Been Here In Over A Decade (And the impact on clients’ financial projections)

Last night the U.S. 10-Year Treasury yield did something it hasn’t done since 2010… it hit 4%.

Just two years ago the 10-year was yielding a measly 0.5%! It’s certainly been a wild, parabolic move in rates.

See chart below of 10-Year Treasury Rate since the eve of the Great Financial Crisis…

Continue reading “Bonds Haven’t Been Here In Over A Decade (And the impact on clients’ financial projections)”

Posted on

What Have the Bond Markets Been Up To?

First of all, I hope this finds you well. We say that a lot, but it has such a deeper, intense meaning today, doesn’t it? In any case, I truly hope you and your families are safe.

As for our family, we’re doing just fine. I actually think our middle child, Lexi (6), is going to go back to school far ahead of where she was when they dismissed! She’s been cranking through the math workbooks that Mom got her.

I’ve got so many things I want to talk about that I think are important right now. Don’t worry, I’m only going to focus on one topic here, but it was a struggle to figure out what I wanted to address tonight.

Ultimately, I’ve decided to talk about the bond markets as the stocks markets have, understandably, been getting all the attention. Other topics you can expect in coming days and weeks are: precious metals and gold miners, big picture overview, coronavirus metrics you may not have seen yet, deflation vs. inflation, my market timing strategies’ performance results through this historic decline (preview: they have fared very well). Continue reading “What Have the Bond Markets Been Up To?”

Posted on

Fed Enacts Emergency Rate Cut. New Record Lows on Treasuries

This morning at about 9 AM central, in response to the Coronavirus, the Federal Reserve announced an emergency 0.50% rate cut.

The initial response by the market was to send stocks and gold soaring. As the day wore on U.S. stocks crumbled losing about 3.5% at one point and ending the day down 2.8% while gold hung on for a 3%+ gain.

The 10-year Treasury yield continued to slide throughout the day (sending bond prices up) and even got below 1% for the first time ever! Think about that…in the almost-250 years of this great Republic we’ve just set a record low on bond yields. Continue reading “Fed Enacts Emergency Rate Cut. New Record Lows on Treasuries”