30 year Treasury @ 3.90%

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Submitted by moneymaker on June 20, 2013 - 9:18am

Could this be it? The beginning of the inflation that everyone has been expecting! Okay maybe not everyone, but a vast number of people.

Submitted by The-Shoveler on June 21, 2013 - 9:21am.

FormerSanDiegan wrote:
The-Shoveler wrote:
OK I will take a stab at it knowing full well I am about to be flamed.

If they raise interest rates without wage inflation then the housing market will crash followed by state and city bankruptcies one after the other because their main source of revenue is property tax.

This will cause a lot of other economic issue etc...

A lot of people I think fail to put two and two together and think housing crash existed in some sort of vacuum.

I don;t follow. How would this scenario lead to 7-10% inflation. Sounds deflationary to me

Yes absolutely it would be deflationary if the Fed increases rates WITHOUT FIRST there being wage inflation (7-10%),
That’s why I think it will not be any time soon.

Or if they do then they will be FORCED to reverse course very quickly.

Submitted by moneymaker on June 21, 2013 - 11:37am.

10 year T bills @ 3.57% today. As the 10 year goes higher, if the fed leaves rates low don't they end up losing more money. Maybe the 2 year @ .235 is a better indicator however of how much money the government is losing. In that light it is a mere pittance I suppose. Once rates do go up nobody will hold the old T bills, they will cash them in to buy the new higher rate T bills.

Submitted by SD Realtor on June 23, 2013 - 7:25am.

Try to understand that the auctions have been propped up by the fed for awhile now.

Submitted by SK in CV on June 23, 2013 - 8:18am.

moneymaker wrote:
10 year T bills @ 3.57% today. As the 10 year goes higher, if the fed leaves rates low don't they end up losing more money. Maybe the 2 year @ .235 is a better indicator however of how much money the government is losing. In that light it is a mere pittance I suppose. Once rates do go up nobody will hold the old T bills, they will cash them in to buy the new higher rate T bills.

T-bills are US government obligations that pay off on a specific date at a specific amount (in denominations of $1,000), with due dates of less than 1 year. They don't pay interest, they are issued, and bought and sold on the open market at a discount. They can't be cashed in early.

Similarly, Treasury notes can't be cashed in early. They're obligations that are due between 1 and 10 years and pay interest. Once issued, they exist to maturity. Investors cannot cash them in at full value, and then buy a higher yielding note with the proceeds. They can only sell them on the open market at current rates.

Submitted by moneymaker on June 24, 2013 - 9:59pm.

Thanks SK, did not know that, by the way 30 Treasury Yield hit 3.63% today.

Submitted by moneymaker on July 5, 2013 - 11:41am.

3.68% today and with Apple going the opposite way of the market so many times I have no idea what's going on these days. One thing I just learned is not to put time/date specific stuff into the title of posts, live and learn I guess. Want to go wine tasting tomorrow in Temecula but wife thinks it will be too hot, anyone agree with her?

Submitted by CA renter on July 5, 2013 - 6:30pm.

Go wine tasting. Doesn't matter if it's too hot. Have a fun time! :)

Submitted by paramount on July 5, 2013 - 10:15pm.

moneymaker wrote:
Want to go wine tasting tomorrow in Temecula but wife thinks it will be too hot, anyone agree with her?

Mid to upper 80's on sat - that's great weather IMO.

Once the afternoon breeze blows in (and it will...), it will be really nice.

As was pointed out, the market is currently schizophrenic.

Submitted by moneymaker on August 16, 2013 - 4:27pm.

30 year @ 3.85% and we are finally going wine tasting tomorrow.

Submitted by scaredyclassic on August 16, 2013 - 4:51pm.

I am on a mission tO get bocce courts installed at local wineries.

It would help if you say, hey where's the bocce court? When you go to the wineries

Submitted by moneymaker on August 17, 2013 - 7:04pm.

ok went there, and did not see anything but hills, so I'm thinking bocce is out of the question. Had a good time but could not believe how much noise a group of girls can make in a corking room. Brought back 3 over priced bottles which are now in my wine cooler. Have no idea when I will drink them.
The internet has reached a new low in my opinion, even the movie trailers have commercials as previews.

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