Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Toddsterpatriot

One adage that I’ve heard is “you can’t fool the bond market”; and I guess that makes sense. It dwarfs the stock market in $$ terms. But I see my spreadsheet on I series bonds (used as short term savings, because checking only pays 1/10th of 1 per cent!) shows yields varying from 3 to 4 per cent. Better than a kick in the pants, but inflation is ticking up more than that. Is that what we’re seeing here, is foreign bondholders cashing out and chasing higher yields?

Shouldn’t the FED be raising interest rates?


631 posted on 10/28/2007 11:36:14 AM PDT by Freedom4US
[ Post Reply | Private Reply | To 626 | View Replies ]


To: Freedom4US
But I see my spreadsheet on I series bonds (used as short term savings, because checking only pays 1/10th of 1 per cent!) shows yields varying from 3 to 4 per cent.

Total yield? What's the coupon? Before the inflation payout.

633 posted on 10/28/2007 1:46:03 PM PDT by Toddsterpatriot (And of course, one man's benefit is another man's loss.)
[ Post Reply | Private Reply | To 631 | View Replies ]

To: Freedom4US
Better than a kick in the pants, but inflation is ticking up more than that. Is that what we’re seeing here, is foreign bondholders cashing out and chasing higher yields?

The 10 year bond currently yields 4.4%. If they were cashing out, yields would be much higher.

641 posted on 10/29/2007 6:11:06 AM PDT by Toddsterpatriot (And of course, one man's benefit is another man's loss.)
[ Post Reply | Private Reply | To 631 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson