TLT and interest rates
Moderator: Global Moderator
TLT and interest rates
Looks like TLT's price will be going down for awhile with strong growth numbers published today. I think it says one more report like this and interest rates will most likely start going the other way having bottomed here.
Re: TLT and interest rates
The thing is, I really don't know how much LONG rates will adjust. There's currently about a 0-3.2% spread between long and short rates. This is a huge spread, historically, so I highly doubt if short rates went to 2%, we'd see long rates at 5.2%, but I could be wrong. I don't know where I get this, but I sort of see a 4.5% ceiling on long-rates for a while to come, yet...
Not that a 3.2%-to-4.5% jump in rates won't be a drop worth considering to your TLT values.
Not that a 3.2%-to-4.5% jump in rates won't be a drop worth considering to your TLT values.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine
Re: TLT and interest rates
Ouch. A pretty big hit today. Moda, if you are right, I will be rebalancing into bonds at higher rates and happy for the higher overall yield in my PP (I'll be steadily venting on the way down though. Grrr.).
Re: TLT and interest rates
That's a spicy meatball.... but I still hate gold more.barrett wrote: Ouch. A pretty big hit today. Moda, if you are right, I will be rebalancing into bonds at higher rates and happy for the higher overall yield in my PP (I'll be steadily venting on the way down though. Grrr.).