InvestorsHub Logo
Followers 1113
Posts 118322
Boards Moderated 3
Alias Born 03/27/2007

Re: ABXX post# 96119

Thursday, 04/26/2012 1:52:09 AM

Thursday, April 26, 2012 1:52:09 AM

Post# of 364137
ahahahaha!! ur book smart but u are completely off!!!

let me be as simple as possible.

I buy a 10 year bond with a 2% yield

2 years later 10 year bonds are yielding 4% as interest rates RISE.

if I wanted to sell my 10 year 2% bond it will be at a LOSS


comprende muchacho???

that is what the FED will be facing and explains my point exactly. I am right you are wrong.

can I be any simpler???

the FED has been buying bonds at extremely low prices throughout this whole crisis to keep rates low, when rates rise they will be selling these bonds for a BIG LOSS that is a fact


comprende???


Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.