Monday, December 2, 2013

More Bondmageddon Thoughts

The following chart shows the constant maturity rate of the 1-year, 2-year, 3-year, and 5-year treasuries.


Click to enlarge.

Bondmageddon Thoughts

1. ZIRP.
2. Yawn.

See Also:
Bondmageddon Thoughts

Source Data:
St. Louis Fed: Custom Chart

4 comments:

Rob Dawg said...

Leave it in the market for two weeks or in treasuries for two years. Decisions, decisions.

Stagflationary Mark said...

Rob Dawg,

But choose wisely, for while the true Grail will bring you life, the false Grail will take it from you. - Grail Knight

Don't forget to leverage up by shorting the one you don't choose!

Bad Mark! Bad! Bad! Got caught up in the casino action. Sorry about that.

fried said...

Slightly off topic, but I haven't noticed you mention that the U.S. Treasury added a 0.2% fixed base rate to its Savings I Bonds purchased from Nov. 1, 2013 to April 30, 2014.

See, rates are headed up!. Sort of.

Stagflationary Mark said...

fried,

Yeah. I saw that! I would have been wrong on my 0.0% prediction this time. Go figure. I kept meaning to post about it but other things popped up.

Meanwhile, the EE Savings Bond rate actually fell from 0.2% to 0.1%. I would have predicted higher.

I-Bonds suggest we're trying to come out of crisis mode but EE-Bonds suggest we're trying to go right back in.