U.S 10 year Treasury (Annual rate)

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S_Track
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U.S 10 year Treasury (Annual rate)

Post by S_Track »

When I look this morning I see the U.S 10 year ~.75%. How should I interpret that, is that the current annual yield that a 10 year note is expected to pay? Ihanks
jebmke
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Re: U.S 10 year Treasury (Annual rate)

Post by jebmke »

That is the Yield to Maturity on 10-Year notes. The coupon rate could be more or less.
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Angst
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Re: U.S 10 year Treasury (Annual rate)

Post by Angst »

It's a function (inverse) of the market price of the bond. You can watch the yield vs price go up and down every minute at various websites like this one: https://www.cnbc.com/quotes/?symbol=US10Y

You can also follow daily closing rates for all the Treasury issues (nominal & TIPS) at these Treasury URLs:
https://www.treasury.gov/resource-cente ... &year=2020
https://www.treasury.gov/resource-cente ... &year=2020
MikeG62
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Re: U.S 10 year Treasury (Annual rate)

Post by MikeG62 »

S_Track wrote: Thu Oct 08, 2020 7:53 am When I look this morning I see the U.S 10 year ~.75%. How should I interpret that, is that the current annual yield that a 10 year note is expected to pay? Thanks
Yes.

Hard to imagine anyone seeing that as compelling.
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jebmke
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Re: U.S 10 year Treasury (Annual rate)

Post by jebmke »

MikeG62 wrote: Thu Oct 08, 2020 8:44 am Hard to imagine anyone seeing that as compelling.
I guess it depends on your next best alternative. For large investors, there really aren't any.
When you discover that you are riding a dead horse, the best strategy is to dismount.
MikeG62
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Re: U.S 10 year Treasury (Annual rate)

Post by MikeG62 »

jebmke wrote: Thu Oct 08, 2020 8:47 am
MikeG62 wrote: Thu Oct 08, 2020 8:44 am Hard to imagine anyone seeing that as compelling.
I guess it depends on your next best alternative. For large investors, there really aren't any.
That's true (for those who are buying treasuries at amounts far in excess of FDIC/NCUA insurance limits). I'd still bet they hold their nose when buying them.
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Robot Monster
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Re: U.S 10 year Treasury (Annual rate)

Post by Robot Monster »

MikeG62 wrote: Thu Oct 08, 2020 8:57 am
jebmke wrote: Thu Oct 08, 2020 8:47 am
MikeG62 wrote: Thu Oct 08, 2020 8:44 am Hard to imagine anyone seeing that as compelling.
I guess it depends on your next best alternative. For large investors, there really aren't any.
That's true (for those who are buying treasuries at amounts far in excess of FDIC/NCUA insurance limits). I'd still bet they hold their nose when buying them.
I held my nose when I purchased 5yr TIPS at 0.4% not too long ago, and now that yield looks mouthwateringly high. That could very well happen to today's yields, depending. Consider:
Stan Druckenmiller says the Fed's loose monetary policy has him worried about inflation.
"I could easily see 5%-10% inflation," he said, speaking on CNBC.
At the same time, the Fed has "also increased the risk of deflation."
Fed Chair Jerome Powell has "created a massive asset bubble," Druckenmiller said, adding he could envision 3%-4% deflation.
link
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