InvestorsHub Logo
Followers 38
Posts 9736
Boards Moderated 2
Alias Born 06/03/2007

Re: None

Saturday, 06/08/2013 8:08:57 AM

Saturday, June 08, 2013 8:08:57 AM

Post# of 140146
Anyone have thoughts on what is the root cause of the spike in interest rates? Yesterday 30 year rate was 4.125! It takes a pretty big SOMETHING to cause a move like that in a market that big and I really haven't read anything significant outside of the normal websites devoted to financing a house.

I'm sure there are all sorts of possible reasons but the biggest thing that I can think of is that QE stopped. If we've had very high demand from the Fed in bonds then that makes the price go up and keeps the yield down. If the demand were to suddenly diminish then the price would go down and the yield up. Hard to see a correlation with Japan markets in terms of repatriation or money moving out of Japan and into US bonds either since that should cause bond prices to go up and rates down too I would think.

Anyone have other thoughts about the reasons?

the government cannot give anything to anyone -- that they have not first taken away from someone else.

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.