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Post by aztec70 on Mar 20, 2012 8:43:24 GMT -8
Interest rates are at very low levels. The government should be locking in these rates for LONG term. Get on it, Treasury.
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Post by davdesid on Mar 20, 2012 14:53:45 GMT -8
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Post by aztec70 on Mar 20, 2012 15:49:09 GMT -8
That was a very misleading headline. The 30 years sold at 3.75, expectations 3.65. Yet, the article tells us that a month ago they sold at 4.2%. I don't see failure. That is a good size drop in rates.
100 year bonds would sell. It all depends on the rate. Would 4.5% work? 5% work? No one knows. That what the market determines. I say it is worth they effort to find out.
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Post by davdesid on Mar 20, 2012 16:22:42 GMT -8
That was a very misleading headline. The 30 years sold at 3.75, expectations 3.65. Yet, the article tells us that a month ago they sold at 4.2%. I don't see failure. That is a good size drop in rates. 100 year bonds would sell. It all depends on the rate. Would 4.5% work? 5% work? No one knows. That what the market determines. I say it is worth they effort to find out. Well, they could offer them at those rates. 5% looks good about now. But 100 years? Only if you are part of the "1%", and expect to live a very long time. www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield |
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Post by aztec70 on Mar 20, 2012 16:55:00 GMT -8
100 year bonds are not a new concept. I had a client that inherited one and it matured about 10 years ago. It was a railroad bond. The railroad was long gone, but the railroads that bought it were still in existence. It paid every quarter and he got back the principal. He got back the canceled bond as well. It was a fantastic engraving job.
I bring this up because the British are thinking about 100 year bonds. They had issued them in the past.
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Post by aztec70 on Mar 20, 2012 16:58:17 GMT -8
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