How Low Are Bond Yields Going ?

25 May in 10 year note, 5 year note, Blog, Bond futures, bond yields, commodity broker, commodity trading, Euro dollar futures, futures broker, interest rates, Michael Seery, option trading, Seery Futures LLC

 Bond Futures-- The bond market rallied sharply last week with today’s action slightly lower in Chicago however bonds climbed right near all-time highs in the bond futures and all-time lows in the bond yields with the 10 year note yielding 1.75% near a new record low breaking the old lows of 1.83% while the five-year note is at 0.75% breaking the old record low of 0.82%. The 30 year bond yield is trading at 2.85% and the futures are at 147-18 which is near an all-time high as well. What is the bond market telling us? When yields are at all-time lows that tells me that  bond traders think the economy is not doing near as well as reported or the fact that the government is just purchasing so many bonds and pushing the yield so low because of the fact that we are $16 trillion in debt and the United States Federal Reserve does not want to pay high interest rates on that debt so they are forcing yields low which is exactly what Alan Greenspan the former Federal Reserve chairman did 10 years ago which many blame him for causing the housing bubble because of the fact that he kept interest rates so low for so long. The problem with really low rates is senior citizens who are trying to retire want to have some fixed income but there are no interest rates worth purchasing and  they are forced to either buy stocks, land, or some other type of investment with risk. The great thing about buying a bond when you’re 75 years old is that it's guaranteed with no risk and you are guaranteed a certain rate of return which is what many people senior citizens relied upon or use to live on.     If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.

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