Home › Forums › Financial Markets/Economics › 30 year Treasury @ 3.90%
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moneymaker.
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June 21, 2013 at 9:08 AM #763116June 21, 2013 at 9:21 AM #763117
The-Shoveler
Participant[quote=FormerSanDiegan][quote=The-Shoveler]OK I will take a stab at it knowing full well I am about to be flamed.
If they raise interest rates without wage inflation then the housing market will crash followed by state and city bankruptcies one after the other because their main source of revenue is property tax.
This will cause a lot of other economic issue etc…
A lot of people I think fail to put two and two together and think housing crash existed in some sort of vacuum.[/quote]
I don;t follow. How would this scenario lead to 7-10% inflation. Sounds deflationary to me[/quote]
Yes absolutely it would be deflationary if the Fed increases rates WITHOUT FIRST there being wage inflation (7-10%),
That’s why I think it will not be any time soon.Or if they do then they will be FORCED to reverse course very quickly.
June 21, 2013 at 11:37 AM #763119moneymaker
Participant10 year T bills @ 3.57% today. As the 10 year goes higher, if the fed leaves rates low don’t they end up losing more money. Maybe the 2 year @ .235 is a better indicator however of how much money the government is losing. In that light it is a mere pittance I suppose. Once rates do go up nobody will hold the old T bills, they will cash them in to buy the new higher rate T bills.
June 23, 2013 at 7:25 AM #763150SD Realtor
ParticipantTry to understand that the auctions have been propped up by the fed for awhile now.
June 23, 2013 at 8:18 AM #763151SK in CV
Participant[quote=moneymaker]10 year T bills @ 3.57% today. As the 10 year goes higher, if the fed leaves rates low don’t they end up losing more money. Maybe the 2 year @ .235 is a better indicator however of how much money the government is losing. In that light it is a mere pittance I suppose. Once rates do go up nobody will hold the old T bills, they will cash them in to buy the new higher rate T bills.[/quote]
T-bills are US government obligations that pay off on a specific date at a specific amount (in denominations of $1,000), with due dates of less than 1 year. They don’t pay interest, they are issued, and bought and sold on the open market at a discount. They can’t be cashed in early.
Similarly, Treasury notes can’t be cashed in early. They’re obligations that are due between 1 and 10 years and pay interest. Once issued, they exist to maturity. Investors cannot cash them in at full value, and then buy a higher yielding note with the proceeds. They can only sell them on the open market at current rates.
June 24, 2013 at 9:59 PM #763204ParticipantThanks SK, did not know that, by the way 30 Treasury Yield hit 3.63% today.
July 5, 2013 at 11:41 AM #763350Participant3.68% today and with Apple going the opposite way of the market so many times I have no idea what’s going on these days. One thing I just learned is not to put time/date specific stuff into the title of posts, live and learn I guess. Want to go wine tasting tomorrow in Temecula but wife thinks it will be too hot, anyone agree with her?
July 5, 2013 at 6:30 PM #763356CA renter
ParticipantGo wine tasting. Doesn’t matter if it’s too hot. Have a fun time! 🙂
July 5, 2013 at 10:15 PM #763357paramount
Participant[quote=moneymaker] Want to go wine tasting tomorrow in Temecula but wife thinks it will be too hot, anyone agree with her?[/quote]
Mid to upper 80’s on sat – that’s great weather IMO.
Once the afternoon breeze blows in (and it will…), it will be really nice.
As was pointed out, the market is currently schizophrenic.
August 16, 2013 at 4:27 PM #764517Participant30 year @ 3.85% and we are finally going wine tasting tomorrow.
August 16, 2013 at 4:51 PM #764519scaredyclassic
ParticipantI am on a mission tO get bocce courts installed at local wineries.
It would help if you say, hey where’s the bocce court? When you go to the wineries
August 17, 2013 at 7:04 PM #764555Participantok went there, and did not see anything but hills, so I’m thinking bocce is out of the question. Had a good time but could not believe how much noise a group of girls can make in a corking room. Brought back 3 over priced bottles which are now in my wine cooler. Have no idea when I will drink them.
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