The yield on the 10 year treasury has increased fro 1.3 to 1.5 in just 2 days, is this the beginning of a sharp increase in rates, if so maybe it is time to cash in your lump sum...
Or it could be another head fake , who knows ...
3 replies (most recent on top)
Inflation is already high. The reason they won't report inflation accurately is because that's what they want. Healthcare costs, housing (including rents), autos (including insurance and repairs), costs for a higher education, food, taxes (local, state, and federal), are all through the roof. The only things holding steady are things we don't buy a lot of, for example televisions. I would even argue that on a rolling average, energy is also up. They will never raise interest rates for the simple reason that the federal government would not be able to service the debt. In terms of oil and gas on federal lands, the royalty rates on some recent leases have increased the last several years; that's why some leases have not been unitized. People need to wake up!
We're in a recession, but everyone's afraid to call a spade a spade. Europe and Japan are already flirting with negative interest rates. Expect the house of cards to fall soon.
Don't expect any interest rate increases until we establish at least a 2% inflation rate for two consecutive quarters at a minimum. When any interest rate increase is announced, don't expect anything more than 1/4 point. The likelihood is the first rate hike will only be 1/8 point to test the waters.