John Roque notes most investors he’s spoken with “continue to have difficulty considering the major transition that’s occurred for the 10 year Treasury yield – it was going down and is now, incontrovertibly, going up.”

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10 Year Yield, 30 year chart 

10_year_yield

Source: Natexis Bleichroeder

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Even the more modest downtrend (the lighter less severe line) has been penetrated to the upside with the 10 Year hitting 5.143% on Monday.

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Quote of the Day

“Great spirits have always encountered violent opposition from mediocre minds.” 

Albert Einstein (1879-1955)

Category: Fixed Income/Interest Rates, Inflation, Investing, Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Chart of the Week: 10 Year Yield, 30 year chart”

  1. thecynic says:

    hmmm.. 25 year bull market in bonds coincides with a 25 year bull market in stocks.
    one of the biggest misconceptions about asset allocation is that bonds offer a negative correlation to stocks. maybe in the short term, but as you can see not in the long term. when both stocks and bonds start going down together, there will be no place to hide except cash and pension funds will be screwed.

    does anyone think it’s interesting that the bond yield chart in the beginning of the bull run looks very similar to the stock market on the end of the bull run. 1980=2000?

  2. todd says:

    Gold prices are a leading indicator of interest rates. With the current gold action I believe we’ll see at least 7-8% interest rates by this time next year. We’re in some big trouble here.

  3. Alaskan Pete says:

    Beautiful chart. Almost as pretty as the 10yr cup/handle breakout on the miners.

  4. mh497 says:

    Dude, you’re linking to Ruppert? Now you’re scaring me.

  5. Kevin says:

    I would agree with mh497. The article
    “The State of the Peak Oil Movement at the Cusp of Collapse” was a bit more, emm, apocalyptic in tone that Barry usually is. I would be curious what his take on it is.
    BTW, that article refers to “the entire world, and especially China , Russia , India , Germany and Japan are pouring hundreds of billions of dollars of investment into Iran.” That number sounds impossibly high. FDI into China last year was $60.6 billion and that was the most any one country received.