Will we ever see Treasury yields above 8%?

Discussion in 'Economics' started by jrcase, Nov 12, 2009.

  1. .............................................................

    Yes and No....

    What would happen if China nor Japan could no longer buy US debt ?

    This is the question....
     
    #21     Nov 13, 2009
  2. well,,, maybe it "game over" already........i do not believe anyone has a workable plan to save the dollar from seroius devaluation
     
    #22     Nov 13, 2009
  3. GTS

    GTS

    Even if someone had a plan I doubt anyone has the political will to do what it takes to fix it.
     
    #23     Nov 13, 2009
  4. is there any hury?
     
    #24     Nov 13, 2009
  5. Rosenberg had several articles on this. Babyboomers (disillusioned with speculative investments blowing up in their faces shift from a capital gains focus to an income focus) and US banks potentially stand ready to soak up US bonds. Private individuals used to own a much larger bond share in their private asset allocation. All this changed in the last three decades. According to Rosy we may see a reversion to the 50s/60s here.

    All this is not completely infeasible. Private investors and institutions in Japan are happily buying JGBs yielding 1-2% since a decade or two.
     
    #25     Nov 13, 2009
  6. ....................................................

    Lack of options ....is a reason....

    Prices horizontal ? The question being "how long "....

    And actually the low interest rate trap....is key in valuations....and thus banks' books....


    ie the norm for LT debt 2% for 10 years....

    What happens to the value of a LT bond with a 3% coupon....when rates move to 6%....10%....

    What happens to valuations in general across the board ?

    This is the interest rate trap.....
     
    #26     Nov 13, 2009
  7. LOL!
     
    #27     Nov 13, 2009