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Sub-par 30-Year Treasury Auction and Rates
Posted: Thu May 08, 2014 4:15 pm
by buddtholomew
How does the poor demand for treasuries at today's auction impact long-term bond rates moving forward? Does it suggest that there is floor to interest rates in the current economy as the 30-year bond was trading at a lower yield than the auction high of 3.44%? TLT reversed course on the news and the rate moved upwards towards the auction high, lowering the value of my holdings.
Re: Sub-par 30-Year Treasury Auction and Rates
Posted: Thu May 08, 2014 5:42 pm
by tnt
This is the quandry, something has to break and the bond market and stock market disagree which one will break. My theory is that 1-2% GDP can only support equity advances for so long. Unless the economy takes off in the next year or two, stocks will correct and bond prices will go back up, bonds already corrected 30% last year and have gained back 10% this year, now it is stocks turn.
Re: Sub-par 30-Year Treasury Auction and Rates
Posted: Wed May 14, 2014 7:08 pm
by buddtholomew
Today's 30-Year treasury bond closed at a yield of 3.37% That's down 7 basis points or 2% since my initial post on 5-8-2014.
The yield was 3.09% on 5-16-2013. For those timing their entry into treasuries, things have become slightly more complicated.