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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (22960)	2/5/2005 3:18:51 PM
From: John Vosilla	Read Replies (1) \| Respond to of 116555

Perhaps the explanation is too much liquidity in the system courtesy of the US that has forced other nations to follow. Short term depresses inflation and yields but long term is very inflationary.

To: Crimson Ghost who wrote (22960)	2/5/2005 7:04:03 PM
From: J_Locke	Respond to of 116555

Long rates don't always rise when the fed is in tightening mode. There's a good historical abstract of interest rates at the fed's website: federalreserve.gov. The present cycle seems similar to 1961. The fed funds rate bottomed on 7/5/61 at 1.11%. At the time the 10y was at 3.92%. A year later, the fed funds was at 2.86%, and the 10y was 4.01%. Note, however that this was the beginning of an interest rate bear market that didn't end for another 23 years. Lock in those rates while you can!