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#5
08-21-2007, 03:59 PM
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 Re: FED will continue to drop interest rates "bondguy1824" <bondguy1824[at]gmail.com> wrote in message news:1187654090.789931.219310[at]r34g2000hsd.googlegroups.com... - quote - > On Aug 20, 8:43 am, "Robert" <b...[at]caching.cn> wrote:
Since you bring up the WSJ, here's what they had to say yesterday (Monday):> > now that the overnight is at 5.75, long term rates will be cut to 5.0 > > next month and > > from there, they will drop again to 3% or lower > > > bonds will take a hit > What bonds are you talking about? Joe is right, and as the WSJ is so > quick to point out, bond prices move inversely to interest rates. "[Headline] Longer-Dated Treasury Issues May Bear Brunt of a Rate Cut ... "Friday['s rate] cut ... was enough to prompt a significant drop in the prices of long-dated Treasuries. ... "[L]ong-dated Treasuries [] would suffer most from a hasty cut, which could hit the 10-and 30-year issues with the full force of inflation concerns. ... Should investors decide that the Fed has taken its eye off inflation, they will demand far higher premiums for holding long-term interest-rate risk." Mark Freeland BnetOnewsX[at]sbcglobal.net |
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#4
08-21-2007, 02:27 PM
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| Re: FED will continue to drop interest rates - quote - > now that the overnight is at 5.75, long term rates will be cut to 5.0 next month and
The "market rate" for short term bonds was 3.09% yeasterday.> from there, they will drop again to 3% or lower The huge disconnect between the Fed and the market can mean many things- almost none of them good. |
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#3
08-21-2007, 09:19 AM
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| Re: FED will continue to drop interest rates On Aug 20, 8:43 am, "Robert" <b...[at]caching.cn> wrote: - quote - > now that the overnight is at 5.75, long term rates will be cut to 5.0 next month and
What bonds are you talking about? Joe is right, and as the WSJ is so> from there, they will drop again to 3% or lower > bonds will take a hit quick to point out, bond prices move inversely to interest rates. |
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#2
08-20-2007, 02:44 PM
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| Re: FED will continue to drop interest rates Robert wrote: - quote - > now that the overnight is at 5.75, long term rates will be cut to 5.0
I'm still waiting for the "very significant correction". We could still> next month and from there, they will drop again to 3% or lower > bonds will take a hit get there... -Will |
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#1
08-20-2007, 01:15 PM
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| Re: FED will continue to drop interest rates On Aug 20, 7:43 am, "Robert" <b...[at]caching.cn> wrote: - quote - > now that the overnight is at 5.75, long term rates will be cut to 5.0 next month and
Hmmm. Generally, if interest rates go down, the price of bonds goes> from there, they will drop again to 3% or lower > bonds will take a hit up. Why do you think bonds will go down? Dave |
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08-20-2007, 01:14 PM
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| Re: FED will continue to drop interest rates Robert wrote: - quote - > now that the overnight is at 5.75, long term rates will be cut to 5.0
Rates fall, bonds' value rises. Generally speaking. Anything else would> next month and from there, they will drop again to 3% or lower > bonds will take a hit be an anomaly. JOE |
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#-1
08-20-2007, 12:43 PM
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| FED will continue to drop interest rates now that the overnight is at 5.75, long term rates will be cut to 5.0 next month and from there, they will drop again to 3% or lower bonds will take a hit |
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