Loading ...Think about it. Somebody with millions can lock in 3.3% for ten years. And as more and more people dive in, the the yield would drop, your Bond or your principal investment would climb while sitting on them. Bond traders made a lot of money as rates were dropping since 1982.
Ten year Bond Chart back to 1982 shows a general CLIMB. The climb reflects falling rates. The dips or corrections reflect climbing rates. Re the zig sags. Up is down rates and down is up rates. So what would chart readers or bond traders say about this chart? The dip is a buying opportunity, or a long term rotation back down, re higher rates. I report you decide.
I myself don’t think higher rates are going stop higher prices on important things in short supply like food or fuel that are constantly steadily used and needed. The Fed has to hope higher prices will encourage investment in higher production. But if I’m a producer, I’m already happy, why be greedy waste money and produce more?? Everything is too unstable and volatile.
The only benefit for higher rates would be to kill speculation on stocks and real estate bubbles. In the last cycle the speculation in the 1970s was Gold and Silver and collectibles everybody was dumping excess printed money.
untitled (mrci.com) ten year bond price.