{"id":111391,"date":"2009-12-29T08:15:00","date_gmt":"2009-12-29T13:15:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/long-term-yields-arent-fooled-by-the-fed-2009-12"},"modified":"2009-12-29T08:15:00","modified_gmt":"2009-12-29T13:15:00","slug":"long-term-treasury-yields-scream-2007","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/111391","title":{"rendered":"Long Term Treasury Yields Scream 2007"},"content":{"rendered":"<p><div style=\"float: left; padding: 15px 15px 15px 0;\">\n<script type=\"text\/javascript\">\/\/ <![CDATA[\ntweetmeme_source = 'moneygame'; tweetmeme_service = 'bit.ly';\n\/\/ ]]><\/script><br \/>\n<script src=\"http:\/\/tweetmeme.com\/i\/scripts\/button.js\" type=\"text\/javascript\"><\/script>\n<\/div>\n<p>This Bloomberg graphic taken from <a href=\"http:\/\/researchpuzzle.com\/\">The Research Puzzle<\/a> gives a nice snapshot of where treasury yields have gone over the last two decades. Yields for different maturities of U.S. treasuries are shown by each color, with 30-year bonds in light green.<\/p>\n<p>First, it&#8217;s clear that the longest-term 30-year bonds have rarely been fooled for long by short-term cuts to interest rates. Furthermore, while 30-year yields momentarily collapsed during the credit crisis, no doubt due to safe-haven panic buying of the times, they snapped back pretty fast and today yields are back near 2006 and 2007 levels, and arguably near the levels we&#8217;ve seen since 2001.<\/p>\n<p>For 30-year bonds, everything is essentially back to &#8216;normal&#8217;, expecting moderate inflation rates and the Fed to raise interest rates back to the previously expected long-term run rate. Summed up in a sentence: We&#8217;re riding the same long-term road as before, even if it&#8217;s a bit bumpy at times. There are neither long-term deflation nor hyper-inflationary expectations baked into 30-year bonds.<\/p>\n<p>(LInk via <a href=\"http:\/\/www.abnormalreturns.com\">Abnormal Returns<\/a>)<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4b39fc0d00000000001d2301&amp;maxX=600\" border=\"0\" alt=\"ltr\" width=\"600\" \/><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/long-term-yields-arent-fooled-by-the-fed-2009-12#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/heres-how-assets-have-rebounded-since-the-crisis-2009-12\">Treasuries Are King Ever Since The Crisis Started<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/japan-denies-reports-about-it-dumping-treasuries-2009-12\">Japan Denies Reports About It Dumping Treasuries<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/rumor-japan-looking-to-sell-off-us-treasuries-2009-12\">Traders Freaking Out Over Rumors That Japan May Dump $100 Billion In Treasuries<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/6QXCw1io124\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This Bloomberg graphic taken from The Research Puzzle gives a nice snapshot of where treasury yields have gone over the last two decades. Yields for different maturities of U.S. treasuries are shown by each color, with 30-year bonds in light green. First, it&#8217;s clear that the longest-term 30-year bonds have rarely been fooled for long [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-111391","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/111391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=111391"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/111391\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=111391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=111391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=111391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}