UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: WendyBG Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35272  
Subject: Long term rates creep higher Date: 4/4/2006 12:42 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Cross-posted on Mishedlo Board.

http://online.wsj.com/article/SB114411671665716153.html?mod=home_whats_news_us

Long-Term Rates Creep Higher
After Years of Resisting the Fed

By MARK WHITEHOUSE and SERENA NG
Wall Street Journal, April 4, 2006; Page A1

After stubbornly resisting nearly two years of prodding by the Federal Reserve, long-term interest rates are on the rise, a trend that could eventually slow the nation's expansion.

...
Few economists expect higher long-term interest rates to derail the current expansion. Indeed, interest rates probably would turn lower again if the economy showed serious symptoms of softening. But economists say the latest trend, if sustained, could cool economic growth and weigh on a housing market that already shows signs of slowing after a series of boom years.

...
Japanese and European economies are looking better than expected, with consumer demand and business confidence growing. That has prompted their central bankers to raise rates, forcing yields in the U.S. higher to compete with improving returns in euros and yen.

The most recent data from the U.S. Treasury hint at a drop in demand for U.S. bonds in favor of securities elsewhere: Foreigners increased their holdings of U.S. Treasury bonds by $4.4 billion in January, compared with an average monthly increase of $28.6 billion in 2005.


What will be the effect on real (post-inflation) interest rates?
Wendy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement