Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DavesM who wrote (288080)	8/19/2002 11:12:03 AM
From: TigerPaw	Read Replies (2) \| Respond to of 769670

If I remember correctly, the Treasury in the late 90's stopped issuing 30 year bonds. This may have been a major reason that long term rates continued to drop, while short term rates were going up in 2000. Yes the government no longer had to borrow long term since it was running a surplus, and yes this lowered long term rates because the fed was no longer in competition with companies who issued debt. I think this supply and demand equation is the primary trend setter for long term rates while the fed rate adds a smaller shorter period changes to the overall rate. TP