Posted by
OffThePeak
11 yrs ago
Long Term interest rates & T-Bond Prices -
Have you looked Recently?
===========================
Jim Rogers said he went "Short Bonds" back in October.
VIDEO:
http://www.youtube.com/watch?v=Xk6BXbD4GTg
Here's a 3-year chart:
http://img705.imageshack.us/img705/3075/tlt3yrs.gif
Latest TLT/10yr Bond etf: 116.75 (High was 132.21, July 2012)
Latest 10 year rate : 2.006% (Low was 1.394%)
Update TLT chart: http://tinyurl.com/AX-TLT-3yrs
Please support our advertisers:
If you are going to short bonds, presumably you would want to go with the longest term available (subject to liquidity being sufficient). Shorting the 30 year would have been a decent trade:
http://futures.tradingcharts.com/chart/TR/
Please support our advertisers:
Ten year rates have quietly crept up from 1.394% to over 2% (2.006%)
So far, this has not hurt confidence on the part of US homebuyers. But at some point it may do so.
HK homebuyers look at their own rates, which are now link to Hibor or prime, These rates have stayed low, as capital floods into HK. But I do not think that HK homebuyers can ignore rising US long rates forever. If the rate rise continues, it is bound to have a spillover effect in HK.
Please support our advertisers:
Ed
11 yrs ago
OTP... by far the largest component of home buyers in the US is insitutional money - Black Rock is a massive player...
Mortgage rates don't affect them because Bernanke is printing 40 billion per month and handing it to them at zirp on one condition - they use that cash to buy foreclosed properties...
So slight increases in the mortgage rates will not have much of an impact on the market at all as they would only affect the small fry
Please support our advertisers:
You must be logged in to be able to reply.
Login now
Copy Link
Facebook
Gmail
Mail