The 10 year treasury bond

[Big ole Boy]

I admit I do not understand the 10 year bond or rates for that matter ...

So much info has come into my head over the years I get lost ...

It seems that the 10 year T-bill is gonna keep going higher ....

what makes it go up? ...lack of demand?

...the 1%' ers .... decide to put cash on the sidelines or do something else with it .....

... taper or not taper ..... the 10 year T-bill ..... many say will keep going up ......

.... and many seem unconcerned and say it will help stocks ....

.... I'm baffled .....

...yea, I understand the rudiments of the inverse of price verses yield ...

... we are at 2.86 right now it was 1.52 a year ago ......

...what happens at 3.00 or 5.00%?

.... right now everybody seem to be in a kind of "happy spot"

 

[Workbox]

Gold will rise and dollar will go down. I would not call it a happy spot, but more of a wait and see area. If we get to the 3-5% it would dramatically effect the economy. The market would plummet. The FED can only control so much. Inflation is creeping BEN'S bedside.

 

[Riick]

SHTF in 2014... most probably when Bernake leaves the FED,
to the capable hands of Obummers new appointee.

Why did you think Mr Bernake was leaving?
--- I say so someone else can take the weight for the debacle
--- coming soon to a Country near you.

 

[Big ole Boy]

Happy spot

ok,

It hit 2.88 about an hour ago.

India has been "Bloomberg ed" ..... as a country nearing a default ....

....

maybe that bond lady is right about all these muni's going bust soon ....?

... still seems like happy spot right now .... (not for India, Japan, China, Russia) ...

.... but ti seems like happy spot in the US

 

[Terrel L. Shields]

Inflation is creeping BEN'S bedside.

He wants out before he gets the blame.... Yellan and Summers should be campaigning for the other one... Ricks 2014 call? Not bad I bet. Gold going up? I don't know but I know that canned food is bumping a buck a can and well over for some items. Used to be 3 for a $1 not very long ago. Even beanie wienies are now $1 at Dollar Gen and used to run 2 for $1. Steak? Don't even ask. Hamburger has went ape since they quit cutting it with "pink slime"...

By Inwood or Hoskold Premise - risk is a multiple of the treasury rate so if the term is 10 yr, then the 10 yr times X factor (3 or 4 maybe more) yields some reasonable cap rates, whereas a 1.5% 10 yr T Bill ? still less than 10% ? No way.

 

[normando]

10 year T bond sounds good at 2.88%. I never bought a bond but do I have to wait 10 years to redeem. Are there funds that get 2.88%, more liquid, and slightly more risky? I can't imagine what I will be doing in 10 years.

 

[Big ole Boy]

Dollar hegemony and Bitcoin .

Central planners using decentralization against other central planners.

Saw another "Bloomberg" spoof on Bitcoin yesterday .....

China is embracing Bitcoin enthusiastically.

China is starting a lot of IPO that offer Bitcoin services.

Seems China policy towards the Libertarian Bitcoin phenomena is being embraced by China elites as one small anecdote to "dollar hegemony" ....

Bitcoin trading at 121

http://www.bloomberg.com/news/2013-...china-virtual-ipos-as-u-s-scrutiny-grows.html

 

[Riick]

10 year T bond sounds good at 2.88%. I never bought a bond but do I have to wait 10 years to redeem.

No, no need to wait 10 years, in 5 years if/when the 10 year is paying 6%
you can *sell* bond for probably only a little less than 50% of par value.
Or, wait the full 10 years and redeem at par.

Isn't QE wonderful?!
Don't you feel it in your soul, or, maybe, in your butt.

 

[Terrel L. Shields]

If interest rates on T Bills ever spikes to 10% - then I want some LONG term. I'll take my chances there, but a 10 yr bond pays so little why would I want one that pays little more than a "now" account at the S & L...?

 

[Riick]

Back in the Jimminy Carter years we bought some 10-years at 13%.
If only we'd bought some 30-year bonds; rate was *much* higher, but the risk seemed much too high.
Shows what can happen over time