- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: It's Official - The Federal Reserve Raises Rate 1/4 Point (Discussion Thread)
Posted on 12/17/15 at 7:17 pm to Shepherd88
Posted on 12/17/15 at 7:17 pm to Shepherd88
quote:This makes absolutely no sense.
the 10 year rate could effectively now fall if it sees an influx of foreign sovereign debt inflows.
1
Posted on 12/18/15 at 10:44 am to LSURussian
How does that not make sense??
Most of Europe is in negative rate territory, why would Germany or the likes invest its sovereign money in a negative yield where they could put it in a AAA rated us treasury with a positive yield? if we see that happening then basic economics tells you the yield will fall bc of demand, we saw this happen late last year when the 10 yr flirted going under 2%.
This will in turn strengthen the dollar even more so compared to the Euro. Yellen talked about this being a major concern the last few meetings.
Most of Europe is in negative rate territory, why would Germany or the likes invest its sovereign money in a negative yield where they could put it in a AAA rated us treasury with a positive yield? if we see that happening then basic economics tells you the yield will fall bc of demand, we saw this happen late last year when the 10 yr flirted going under 2%.
This will in turn strengthen the dollar even more so compared to the Euro. Yellen talked about this being a major concern the last few meetings.
Page 1 of 1
Back to top
Follow TigerDroppings for LSU Football News