{"id":116577,"date":"2009-12-30T16:17:00","date_gmt":"2009-12-30T21:17:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/chart-of-the-day-10-year-treasury-note-2009-2009-12"},"modified":"2009-12-30T16:17:00","modified_gmt":"2009-12-30T21:17:00","slug":"chart-of-the-day-government-bonds-were-the-dumbest-bet-of-the-year","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/116577","title":{"rendered":"CHART OF THE DAY: Government Bonds Were The Dumbest Bet Of The Year"},"content":{"rendered":"<div style=\"float: right; margin: 15px 0 20px 20px;\">\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"2\"><a href=\"http:\/\/www.businessinsider.com\/chart-of-the-day\"><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4a32b8394b543722009a9671\" border=\"0\" alt=\"button more charts\" \/><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"http:\/\/www.businessinsider.com\/chart-of-the-day\"><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4a32b8424b543722009a967a\" border=\"0\" alt=\"button chart prev\" \/><\/a><\/td>\n<td><a href=\"http:\/\/www.businessinsider.com\/chart-of-the-day-gdp-q3-2009-12\"><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4a32b84d4b543722009a9685\" border=\"0\" alt=\"button chart next\" \/><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><div style=\"float: left; padding: 15px 15px 15px 0;\">\n<script type=\"text\/javascript\">\/\/ <![CDATA[\ntweetmeme_source = 'clusterstock'; 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>If you bought a ten-year U.S. bond at the beginning of the year, it was a horrible bet. At the time, long-term interest rates had collapsed as much of the world looked for a &#8216;safe haven&#8217; in U.S. government debt.<\/p>\n<p>Yet 10-year bond buyers forgot that bonds do well in a crisis only if you own them <em>before<\/em> everyone has panicked, not after.<\/p>\n<p>As shown below, the 10-year bond yield has increased substantially year to date, rising to about 3.8% from 2.5% in early January. That&#8217;s a huge move in 10-year bond terms.<\/p>\n<p>Bond prices move in the opposite direction of market yields, thus the old 10-year bond that went for $100 in January would now go for about $90 (Using a simple bond calculator) given that it has to pay 3.8% yield with its old low coupon. Look at any U.S. long-term bond ETF, it&#8217;ll be down for the year. Meanwhile, stocks and even <em>junk bonds<\/em> have rallied.<\/p>\n<p>Worse yet, if U.S. interest rates are hiked, or U.S. inflation picks up, the ten year bond in our example will likely fall even further in value. Simply put, it&#8217;s not a &#8216;safe haven&#8217; investment when everyone is herding into it.<\/p>\n<p><img decoding=\"async\" class=\"chartOfTheDay\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4b3bc12a0000000000693c1a\" border=\"0\" alt=\"chart of the day, 10-Year Treasury Note (2009) - updated\" \/><\/p>\n<hr \/>\n<h3>Get This Delivered To Your Inbox<\/h3>\n<p>You can get this dropped in your inbox every afternoon as <strong>The Chart Of The Day<\/strong>. It&#8217;s simple. It&#8217;s convenient. It&#8217;s free. All we need is your email address (though we&#8217;d love your name and state, too, if you&#8217;re willing to share it).&nbsp; Sign up below!<\/p>\n<div style=\"clear: both; padding-top: 1em;\">\n<form style=\"display: inline;\" action=\"http:\/\/alleyinsider.puresendmail.com\/cast\/list\/ListUser\" method=\"post\"> <input name=\"command\" type=\"hidden\" value=\"sub\" \/> <input name=\"lid\" type=\"hidden\" value=\"2226\" \/> <input name=\"vc\" type=\"hidden\" value=\"1144274571\" \/> <input name=\"pwv\" type=\"hidden\" value=\"alleysubscribe1!\" \/> <input name=\"ok\" type=\"hidden\" value=\"http:\/\/clusterstock.alleyinsider.com\/thank-you.html\" \/> <input name=\"error\" type=\"hidden\" value=\"http:\/\/clusterstock.alleyinsider.com\/clusterstock-newsletter-sign-up-error\" \/> <input name=\"appmsg\" type=\"hidden\" value=\"Message_Parameter_Name\" \/> <input name=\"this\" type=\"hidden\" value=\"http:\/\/clusterstock.alleyinsider.com\/clusterstock-newsletter\" \/> <\/p>\n<table style=\"width: 610px; height: 80px;\" border=\"0\" cellspacing=\"2\" cellpadding=\"2\">\n<tbody>\n<tr>\n<td><strong><label style=\"width: 6em; float: left;\">Email<\/label><\/strong><input name=\"email\" size=\"30\" type=\"text\" \/><\/td>\n<td><label style=\"width: 6em; float: left;\">State<\/label><input name=\"state\" size=\"3\" type=\"text\" \/><\/td>\n<\/tr>\n<tr>\n<td><label style=\"width: 6em; float: left;\">First Name<\/label><input name=\"first\" size=\"30\" type=\"text\" \/><\/td>\n<td><label style=\"width: 6em; float: left;\">Last Name<\/label><input name=\"last\" size=\"30\" type=\"text\" \/><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><input name=\"optin\" type=\"hidden\" value=\"on\" \/><input class=\"enewsbutton\" type=\"submit\" value=\"Sign Up\" \/><\/p>\n<\/form>\n<\/div>\n<p><a href=\"http:\/\/www.businessinsider.com\/chart-of-the-day-10-year-treasury-note-2009-2009-12#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\/long-term-yields-arent-fooled-by-the-fed-2009-12\">Long Term Treasury Yields Scream 2007<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/eric-sprott-the-fed-is-a-ponzi-the-treasury-purchase-data-is-a-lie-2009-12\">Eric Sprott: The Fed Is A Ponzi, The Treasury Purchase Data Is A Lie<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/us-effort-to-issue-higher-mix-of-long-term-bonds-says-they-know-rates-are-too-low-2009-10\">Even The U.S. Treasury Is Betting On Higher Inflation<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/QT-SwLVOWs0\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you bought a ten-year U.S. bond at the beginning of the year, it was a horrible bet. At the time, long-term interest rates had collapsed as much of the world looked for a &#8216;safe haven&#8217; in U.S. government debt. Yet 10-year bond buyers forgot that bonds do well in a crisis only if you [&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-116577","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/116577","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=116577"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/116577\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=116577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=116577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=116577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}