10 year nudged 3% today

KnightWhoSaysNit

Well-Known Member
Jul 19, 2010
8,215
7,837
1
I am stunned that bond prices have fallen this far and fast. One has to go back more than a decade to find these levels.

Stock market behavior is interesting. Investors comb through the ashes through the weekend to find buys for this dip. Then the broader market continues the selloff as valuations fail at the higher interest rates. Meanwhile, gobs of cash sit in money markets waiting to jump back in once the Fed finishes its destruction.

My questions ...

At these interest rates how does the government finance itself without printing money and further crashing bonds?

Any Dems willing to tell us what they would cut from the federal budget? Who you would tax and how much? If the answer is corporations how exactly will that lower inflation?
 

Sullivan

Well-Known Member
Nov 24, 2001
16,478
12,153
1
I am stunned that bond prices have fallen this far and fast. One has to go back more than a decade to find these levels.

Stock market behavior is interesting. Investors comb through the ashes through the weekend to find buys for this dip. Then the broader market continues the selloff as valuations fail at the higher interest rates. Meanwhile, gobs of cash sit in money markets waiting to jump back in once the Fed finishes its destruction.

My questions ...

At these interest rates how does the government finance itself without printing money and further crashing bonds?

Any Dems willing to tell us what they would cut from the federal budget? Who you would tax and how much? If the answer is corporations how exactly will that lower inflation?

 
  • Like
Reactions: KnightWhoSaysNit

NJPSU

Well-Known Member
May 29, 2001
42,605
14,606
1
I am stunned that bond prices have fallen this far and fast. One has to go back more than a decade to find these levels.

Stock market behavior is interesting. Investors comb through the ashes through the weekend to find buys for this dip. Then the broader market continues the selloff as valuations fail at the higher interest rates. Meanwhile, gobs of cash sit in money markets waiting to jump back in once the Fed finishes its destruction.

My questions ...

At these interest rates how does the government finance itself without printing money and further crashing bonds?

Any Dems willing to tell us what they would cut from the federal budget? Who you would tax and how much? If the answer is corporations how exactly will that lower inflation?
Wrong. The 10 year hit 3% in 2018. Were you panicking then?


The 10-year Treasury yield has hit the 3% level — here’s what that means​

PUBLISHED WED, APR 25 2018 3:33 AM EDTUPDATED WED, APR 25 2018 5:34 AM EDT

Silvia Amaro
@SILVIA_AMARO
WATCH LIVE

KEY POINTS
  • With yields rising market participants are expecting higher
 

KnightWhoSaysNit

Well-Known Member
Jul 19, 2010
8,215
7,837
1
Wrong. The 10 year hit 3% in 2018. Were you panicking then?


The 10-year Treasury yield has hit the 3% level — here’s what that means​

PUBLISHED WED, APR 25 2018 3:33 AM EDTUPDATED WED, APR 25 2018 5:34 AM EDT

Silvia Amaro
@SILVIA_AMARO
WATCH LIVE

KEY POINTS
  • With yields rising market participants are expecting higher

That was very brief in relative terms.

And funds that held them such as VGIT actually traded at higher prices. I tend to look at the funds since they are liquid.
 

BW Lion

Well-Known Member
Apr 9, 2020
5,075
6,181
1
The 2Year is at 2.7% and the 3 Year is at 2.9%

 

NJPSU

Well-Known Member
May 29, 2001
42,605
14,606
1
That was very brief in relative terms.

And funds that held them such as VGIT actually traded at higher prices. I tend to look at the funds since they are liquid.
3% for the 10 year is still a ridiculously low rate by historical standards.
 

bdgan

Well-Known Member
May 29, 2008
59,651
34,970
1
I am stunned that bond prices have fallen this far and fast. One has to go back more than a decade to find these levels.
I'm not surprised. The Fed was buying $1.4 trillion per year of bonds. Once that stopped the government had to start paying a market rate.
 

NJPSU

Well-Known Member
May 29, 2001
42,605
14,606
1
Yes, I am aware of that. Read more carefully.
Even though you are Republican I do enjoy reading your economic takes. I’d rather discuss the economy and markets all day long over politics. I enjoy the doom porn stuff.
 

LionDeNittany

Well-Known Member
May 29, 2001
44,778
18,564
1
DFW, TX
I'm not surprised. The Fed was buying $1.4 trillion per year of bonds. Once that stopped the government had to start paying a market rate.

And the government printed trillions AND the government did everything in its power to drive oil higher.

The move caught a lot of players offsides. It will be interesting when banks start exploding.
 

KnightWhoSaysNit

Well-Known Member
Jul 19, 2010
8,215
7,837
1
Even though you are Republican I do enjoy reading your economic takes. I’d rather discuss the economy and markets all day long over politics. I enjoy the doom porn stuff.

When I see evidence of increasing productivity I will walk away from the ledge. Unfortunately, everything done by the Democratic Party has been to destroy productivity and instead fool people into thinking they are wealthy by printing money. Government spending and regulation are destructive to private sector productivity, and that is the thing that pays the bills and generates the real returns.
 

bdgan

Well-Known Member
May 29, 2008
59,651
34,970
1
When I see evidence of increasing productivity I will walk away from the ledge. Unfortunately, everything done by the Democratic Party has been to destroy productivity and instead fool people into thinking they are wealthy by printing money. Government spending and regulation are destructive to private sector productivity, and that is the thing that pays the bills and generates the real returns.
Expecting productivity from people is insensitive, racist, misogynistic, and homophobic.
 
  • Like
Reactions: GSPMax