Tuesday, December 9, 2008

Insanity

This chart (if you can see it since my previous chart has somewhat disappeared) represents the fear and insanity of the bond market. I predict the next bubble to pop will be the government debt markets. For what its worth, a low yield indicates and expensive bond. Notice the yield on the 3 month note, basically 0%. It's one expensive note. Sell expensive, buy cheap. Till next time. Also see this link for more info.

U.S. Treasuries


COUPONMATURITY
DATE		CURRENT
PRICE/YIELD		PRICE/YIELD
CHANGE		TIME
3-Month0.00003/12/20090.01 / .010.01 / .00012/08
6-Month0.00006/11/20090.25 / .25-0.03 / -.03015:15
12-Month0.00011/19/20090.44 / .45-0.05 / -.05115:00
2-Year1.25011/30/2010100-25+ / .830-06+ / -.10415:25
3-Year1.75011/15/2011101-25+ / 1.120-09½ / -.10315:51
5-Year2.00011/30/2013101-28 / 1.610-18+ / -.12115:48
10-Year3.75011/15/2018109-17+ / 2.650-26 / -.08915:53
30-Year4.50005/15/2038128-00 / 3.052-07½ / -.09915:53

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2 comments:

Anonymous said...

Call me ignorant, but what does this mean? No one wants to buy up the government debt?

December 10, 2008 at 8:37 AM
Clint said...

You need to take some classes on the south end of campus I think. Look for a explanation (I hope) post soon. By the way if you are thinking of getting another degree go STRUCTURAL ENGINEERING!!!!! There will be a job and a business waiting for the university paper! No more schlepping to job interviews and getting your hair cut. :)

December 10, 2008 at 3:26 PM

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