All American Investor

Showing posts with label 30. Show all posts

Tuesday, June 02, 2009

30 Year Treasury Bond Constant Maturity (Chart)

30 Year Treasury, Constant Maturity, Chart

The Chart tells the story.

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Wednesday, May 13, 2009

30 Year Conventional Mortgage Rate Ticks Up (Chart)

Slight up tick but still below 5 percent. Fed buying of mortgage backed securities and treasuries is still holding rates down.

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Wednesday, May 06, 2009

30 Year Conventional Mortgage Rate (Chart, 0506)

30 Year Mortgage

Mortgage interest rate remain low and are hovering around 4.80 percent.
Meanwhile, the ten year Treasury yield is rising and mortgages are tied to treasuries in the long run.
Mortgage interest rates remain low as the FED continues to buy mortgage backed securities and add them to their balance sheet.
The FED action is capping rates in the mortgage area for now.

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Sunday, April 26, 2009

30 Year Goverment Bond Signaling Problems Ahead (Chart)

Thirty Year Government Bond, Daily Price.

The 30 year Treasury Bond yield is drifting slowly upwards. This indicates there is little interest in the bond. With a slew of government debt on the horizon this does not bode well.

The thirty year remains a good proxy of future inflation expectations and should be watched closely. This is exactly what we intend to do.

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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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Wednesday, April 08, 2009

30 Year Treasury in Perspective (Graph)

The 30 Year Treasury Constant Maturity.

Notes:

Unless you are over 50 years old, it is probably hard to believe that the 30 year Treasury bond traded above 15 percent.
In 1982, you could have bought a $1,000,000 Treasury zero coupon bond for $15,000. This allowed you to lock in a compounded interest rate of 15 percent for 30 years. Imagine investing $15,000 of your IRA or 401K and watching it grow, risk free, to $1,000,000.
Recently, the 30 year spiked down to the 2.50 percent area and right back to the 3.50 percent area.
The low yield for the long term treasury bond is in, and rates should begin to move higher soon.
Interest rate trends tend to persist. They tend to last for long periods of time.
The spike low in the 2.50 area on the long bond is evidence of a final extreme in long term rates.
Interest rates tend to go to an extreme when making a high or a low.

Yields on actively traded non-inflation-indexed issues adjusted to constant maturities. The 30-year Treasury constant maturity series was discontinued on February 18, 2002, and reintroduced on February 9, 2006.