U.S. Government Bonds Pay More Than Debt From Other Developed Nations Higher yields reflect investors’ struggle to reconcile expectations for faster U.S. growth with concerns about impact of deficits and inflation The Federal Reserve has raised interest rates in recent years and begun paring bond holdings accumulated during the financial crisis. Above, a trader works on the floor of the New York Stock Exchange on May 18. Photo: Michael Nagle/Bloomberg News By Daniel Kruger May 20, 2018 8:00 a.m. ET 67 COMMENTS U.S. government bonds are paying more than debt from other developed countries for the first time in almost two decades, a new sign of investors’ struggle to reconcile expectations for faster U.S. growth with concerns about the impact of deficits and inflation. The yield on the benchmark 10-year Treasury note, a key barometer for borrowing costs for consumers and companies, last week topped 3.1%, its highest close in almost seven years. It’s a climb that’s rippling through markets, buffeting stocks and helping fuel a surprise rally in the dollar as higher rates attract yield-seeking investors to the currency. Analysts said the rise in yields in part reflects optimism about the U.S. economy and expectations for a pickup in inflation, which threatens the value of government bonds by eroding the purchasing power of their fixed payments. A market-based measure of expectations for annual inflation over the next 10 years, known as the break-even rate, recently reached its highest levels since 2014. https://www.wsj.com/articles/u-s-go...-debt-from-other-developed-nations-1526817600
%% 3.1 to loan USa gov money; no wonder some buy insured muni debt, stocks, dividend stocks. NOT a prediction. WSJ like$ low PE stuff, so i see your points LOL. I also like US[FDIC] gov insured banks also, as far as doing business with them-NOT a stock tip.Thanks