No. of Recommendations: 7
Economist magazine has a listing of 10 yr govt interest rates around
the globe.  There is more to this than just the ones in the news.  I
suppose this indicates tensions (and perceived risk) various places.
 
Food for thought.

US	        2.02
Canada	        1.97
Britain	        2.00
	
Low end	
Switzerland	0.69
Japan	        0.90
	
High end	
Pakistan       11.10
Brazil	        9.80
Greece	        8.13
Mexico	        7.75
India	        7.37
Russia	        7.01
Turkey	        6.22
Hungary	        5.00
Spain	        4.22
Israel	        3.49
Australia	3.27
S. Korea	2.94
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I'll have to find the article, but I'd argue that anything much under 4% should be labeled "government subsidized." How can Switzerland maintain .69% 10 year rates without some support? Looking at these traditional US rates, and even comparing with equities shows that we would be at 4% or higher now without intervention.
http://advisorperspectives.com/dshort/updates/Treasury-Yield...

And looking at US historical rates, how risky were those higher rates pre-1990.

Also, since I just returned from Australia this weekend (which you Paul know), their CD rates in the 5-6% range look pretty good in this inflation environment, but they're also tempered by home mortgage rates in about the same range.

I think it will be MORE interesting to see how long or if US corporate 10 year rates will remain close to treasuries, and how this all unwinds.

Interesting!

Bob
RYR Home Fool
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I'll have to find the article, but I'd argue that anything much under 4% should be labeled "government subsidized." How can Switzerland maintain .69% 10 year rates without some support? Looking at these traditional US rates, and even comparing with equities shows that we would be at 4% or higher now without intervention.
==================================
I'd contend that they keep those rates down because their banking sector continues to soak in foreign deposits like a sponge - just like American banks. Only better, because they offer a safe non-dollar, non-euro alternative.

Bill
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The yield on Mexico government bonds caught my eye. I looked online for how to buy them

I could not find a mutual fund or exchange traded fund that was strictly mexico government bonds...only ones I found had a mix of bonds from different companies. If looking, you might find something I missed.

I did find an old article saying that folks in US can buy Mexico government bond in increments of $1,000 from brokers like Charles Schwab.
I didn't see anything on Etrade or Zions.

I did come across an outfit in Tigard, Or, called Durig Capital. They offer a LOT of bonds from other countries, and could do small bond packages at institutional rates by bundling.
The gentleman I talked to said they work through Ameritrade, and charge a fee through the Amertirade account. I didn't completely understand it, but he suggested I think of it a bit as buying a mutual fund in my ameritrade accoun.

He said present Mexico government long bond yield is closer to 4.5 to 5% instead of 7%. And he suggested a corportate pipeline bond in argentina, yielding 11%. His site also let me to the CSVSP prefferred in my previous post. You can find Durig Capital on the web, if interested.
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<Also, since I just returned from Australia this weekend (which you Paul know), their CD rates in the 5-6% range look pretty good in this inflation environment, but they're also tempered by home mortgage rates in about the same range.>

I have a Term Account in an Australian bank. I'm trying to decide whether to re-invest in a new Term Account or convert the AUD to USD and bring it home. With the Australian government cutting interest rates, the USD/AUD exchange rate is deteriorating so I could get fewer USDs back if I wait and the rate drops more. The problem of global bond investing is exchange rate risk.

http://research.stlouisfed.org/fred2/series/DEXUSAL

<I think it will be MORE interesting to see how long or if US corporate 10 year rates will remain close to treasuries, and how this all unwinds.>

The Corporate Master Option-Adjusted Spread is higher than it was during the recovery cycle of the late 1990s and mid-2000s. The Federal Reserve has similar charts for each of the bond ratings (including junk bonds) in addition to the "Corporate Master" of investment grade (those rated BBB or better).
http://research.stlouisfed.org/fred2/series/BAMLC0A0CM

The National Financial Conditions Index (NFCI), which measures risk, liquidity and leverage in money markets and debt and equity markets as well as in the traditional and “shadow” banking systems, shows that financial conditions are very loose now.
http://research.stlouisfed.org/fred2/series/NFCI

Should financial conditions tighten (e.g. if the Fed and other central banks were to begin to tighten the money supply due to increasing inflation or if the Euro debt crisis raised its head again or any other liquidity crisis) bond prices would fall. The long-term charts show the response of the market to such events. Watching the spreads and the NFCI is more helpful than nominal bond yields (the Fed has those, also) because the former are measures of bond market risk premiums.

Wendy
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1. Thank you Wendy!

2. I have a Term Account in an Australian bank. I'm trying to decide whether to re-invest in a new Term Account or convert the AUD to USD and bring it home. With the Australian government cutting interest rates, the USD/AUD exchange rate is deteriorating so I could get fewer USDs back if I wait and the rate drops more. The problem of global bond investing is exchange rate risk.

The rate dropped about 6% in the three weeks we were there. Unfortunately for us we had prepaid most expenses (Quantas internal flights, hotel rooms, a deposit on tours).

3. Even taking into account higher labor rates, I can't figure out why costs are so darned expensive there:
Cost: http://www.numbeo.com/cost-of-living/compare_countries_resul...

Bob
RYR Home Fool
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3. Even taking into account higher labor rates, I can't figure out why costs are so darned expensive there:

There's an old story that circulates about the cost of bath tubs in Australia (probably at least from the '50s) and perhaps from the recollections of the many WWII vets who served there.

The usual justification is that Australia offers all the modern conveniences, but production runs are smaller (due to smaller market served) and hence overhead costs are higher.

But I wonder how this has changed in an age of numerous imports from Asia.

Why is real estate more expensive in NY State? Because it always has been. But they say the origin actually is that British nobility got very large estates carved out of the best land. They then sold at their prices forcing others into lower quality land.
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