10-Year US Bond Yields at All-Time Low

Discussion in 'Economy' started by BakshisMouse, May 16, 2012.

  1. BakshisMouse
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    http://finance.yahoo.com/q?s=^TNX

    Closed at 1.765% today. That yields are this low makes me think that the bond market will not give up on America in two years like Paul Ryan says it will.
     
  2. Toro
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    Toro Diamond Member

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    Amazing
     
  3. BakshisMouse
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    How is it amazing?

    Oh, and I made a mistake that I chalk up to temporary dyslexia. The actual all time low close was 1.7%. I must have put the 6 in front of the 7 in my mind.

    It might actually break the all time low soon. Right now they're yielding 1.7260%.
     
  4. iamwhatiseem
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    iamwhatiseem Gold Member

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    The China-effect.
     
  5. BakshisMouse
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    Elaborate, please.
     
  6. iamwhatiseem
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    iamwhatiseem Gold Member

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    They have slowed their bond purchases to a crawl as I understand it.
     
  7. BakshisMouse
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    I can't find any investing or financial writing that suggests that bond yields fall when fewer people buy them. Would you please explain how fewer bond purchasers causes yields to fall?
     
  8. konradv
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    konradv Gold Member

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    Then bond rates should be rising to attract more investors.
     
  9. BakshisMouse
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    Page: Chapter 6: Bonds, Bond Prices and the Determination of Interest Rates, Part II

    From Oswego, State University of New York

    I found the explanation I was searching for. As this chart shows, when the demand for bonds falls, bond yields rise. This is a standard demand-side graph. Fall in demand is shown on the graph by a shift of the diagonal blue demand line to the left. If that happens, the bond yield, or the interest rate, rises.
     

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  10. BakshisMouse
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    I'm reviving this thread just to point out that 10-year US Treasury Notes are yielding 1.63% now, which is actually an all-time low.

    http://finance.yahoo.com/q?s=^TNX
     

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