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Old 11-23-2011, 10:34 AM   #41
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The question is not if the ~30-year bond bubble will burst but when. Ten-year Treasury rates under 2% are exploring uncharted waters.
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Old 11-23-2011, 12:40 PM   #42
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The question is not if the ~30-year bond bubble will burst but when. Ten-year Treasury rates under 2% are exploring uncharted waters.
There's no way rates can remain this low forever, sure. But try as I might I see absolutely nothing in the visible horizon that would lead to a significant increase in rates. I don't see "safe" savings rates exceeding 1% any time in the next few years, for example.
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Old 11-23-2011, 03:40 PM   #43
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The question is not if the ~30-year bond bubble will burst but when. Ten-year Treasury rates under 2% are exploring uncharted waters.
October's 7 year T-note had a coupon of 1.75%, November's 7 year T-note coupon is down to 1.375%.
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Old 11-23-2011, 03:58 PM   #44
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I lucked out on I-Bonds, buying most of them back when they had decent fixed rate components and when the limit was $30k / person / year.
Reminds me of my first mortgage: A variable rate of 1.6% over the one year T-bill rate. Oh, How I wish I still had that loan!!!
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Old 11-23-2011, 04:26 PM   #45
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October's 7 year T-note had a coupon of 1.75%, November's 7 year T-note coupon is down to 1.375%.
Makes me think of all the investing saavy people on this forum that bought I Bonds back when they had a 3% fixed plus inflation. Who would have ever thought those returns would stomp the 7, 10, or even 30 year note? Better watch out congress will pass some law converting those fixed rate I Bonds into 7 year notes as part of the "deficit reduction package" the super committee punted on
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Old 11-24-2011, 06:05 AM   #46
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Makes me think of all the investing saavy people on this forum that bought I Bonds back when they had a 3% fixed plus inflation. Who would have ever thought those returns would stomp the 7, 10, or even 30 year note? Better watch out congress will pass some law converting those fixed rate I Bonds into 7 year notes as part of the "deficit reduction package" the super committee punted on
The 3.375% of 04/15/2032 sure not too looking too bad with a value of 198 after originally purchasing it 9 1/2+ years ago at par.
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