What moves the long bond?

[Lonestar]

I'm sure this may have been covered here or on the Bogleheads thread but what moves the price/rates of the 30 year bond?  I know ultra short rates are controlled by the Fed, and that trickles on up to intermediates, but seems there are other factors that pertain to the long end of the curve.

Also, are there any charts available that compare TLT to the Dow or S&P over a 10+ year period.

Jerry

[Quasimodo]

Hi Jerry;

Here's a link to a chart comparing Vanguard's long term treasury bond fund to the S&P500 over the last 10 years:

http://moneycentral.msn.com/investor/ch ... kie=1&SZ=0

I've heard it said that the Fed controls short term rates but the marketplace controls long term rates.

Someone smarter than me will likely offer a better response.

John

[MediumTex]

I would say that long term treasury rates are driven by supply and demand.  Lower demand = higher rates and higher demand = lower rates.

The news media sometimes gets preoccupied with what should happen or what might happen, and often these scenarios have nothing to do with what actually does happen.

There is a lot going on in the world at any given time that is simply off the radar and some of it involves large capital flows that are utterly disconnected from the news (including financial news) reporting apparatus.