30-year Treasury yield tops 5.31%, the highest in 19 years(www.cnbc.com)

47 pointsby root-parent8 hours ago2 comments

root-parent8 hours ago
"People are worried about America's solvency" - https://news.ycombinator.com/item?id=49329347
- DoesntMatter224 hours ago
  The whole world is insolvent
  - jst1fthsdys4 hours ago
    Time for a global debt jubilee.
    rationalist3 hours ago
    Please let me know when it's time to max out my credit cards to buy gold.
mono4427 hours ago
It's rising because the market expects interest rate hikes. Long-term bonds are basically a prediction market for future interest rates.
- adjejmxbdjdn5 hours ago
  The 30 year isn’t as affected by interest rate hikes unless the market is signaling it sees long term inflation despite interest rate hikes.
  The 30 year should reflect more fundamental issues.
- adam_arthur5 hours ago
  30y is keyed to inflation expectations.
  If fed hiked to 5% tomorrow, 30y would invert and yield would go down.
  It's not as simple as hikes lead to higher 30y yields.
  - vannevar3 hours ago
    It's not all inflation expectations, either. The dollar has been strong lately due to elevated oil prices---countries that are short need extra dollars to buy oil, so they often liquidate treasuries to get them.
- quickthrowman3 hours ago
  You have that backwards. The market sets the long end of the curve via supply and demand,the Fed controls the short end of the curve (federal funds rate)
  If the Fed hiked the (short-term) FFR, long term inflation expectations would go down, along with the yield of long duration Treasury bonds.
- Obscurity43406 hours ago
  Investing in long term bond == expected interest rate hikes?
  - HSO5 hours ago
    yield rising means selling