tag:blogger.com,1999:blog-11027528911364475.post4237521245870827646..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Are Long Bonds About to Break Through or Bounce Back?Jakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-11027528911364475.post-38181528020754360832009-04-07T13:23:00.000-07:002009-04-07T13:23:00.000-07:00Very clear, thank youVery clear, thank youAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-75014796771158391802009-04-07T08:41:00.000-07:002009-04-07T08:41:00.000-07:00there are a lot of ways to view this. here are a f...there are a lot of ways to view this. here are a few quick thoughts:<BR/><BR/>1) there are natural buyers of treasuries in general (one can think of this as total aggregate demand for treasuries of all maturies). as the supply is increased, regardless of where on the curve, prices decline (thus yields rise)<BR/>2) if the 3 and 10 year treasury yields rise, then the 30 year yield should rise based on the incremental risk associated with a longer maturity bond (i.e. why in general the yield curve is steep). <BR/>3) new issuance and quantitative easing increases the likelihood of inflation in the futures, thus the 30 year nominal yield must rise to have an equivalent real yield (all else equal).<BR/><BR/>make sense?Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-32198109344812256052009-04-07T04:48:00.000-07:002009-04-07T04:48:00.000-07:00Jake, can you explain how issuance in the 10 yr an...Jake, can you explain how issuance in the 10 yr and 3 yr affects the Long Bond?Anonymousnoreply@blogger.com