Bond Question

Discussion in 'Economics' started by narballs, Nov 19, 2007.

  1. narballs


    Hi i had a simple question. When the yield curve steepens in the next few years, long bond prices will drop. The past 5 years long bonds fluctuate between 100 to 80. At what point would bonds be trading below 80 (30 year T bonds)? Theoretically at what interest rate?

    Is there a website that graphs the 30 year T bond prices for the past 20 years? (fluctuating from 80 to 100 dollars) Was looking all over the net for one , couldnt find a single chart.
  2. A 30 yr T-bond should always trade "near" par (barring big rate jumps) since it is, by definition, on-the-run.

    Perhaps you want to follow a bond that once was a 30-year through time? Just discount the remaining payments by the evolving spot rate curve.

    Google "Fred II" (=St Louis Fed Economic Data)