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US sells 30-year bonds at 5% yield for first time since 2007
- ares623 5mo agoWhat else happened in 2007?
- andsoitis 5mo agoiPhone launch, the "Harry Potter" series finale, the Virginia Tech shooting, and the expansion of the European Union, amongst others.
- dlcarrier 5mo agoNokia released the most useful phone ever sold: https://en.wikipedia.org/wiki/Maemo https://en.wikipedia.org/wiki/Maemo Enthusiasts were still using it a and releasing updates, over a decade later.
- andsoitis 5mo agoas debtor, you have to pay a higher price when the creditor's risk for non-payment increases. power of the market.
- dlcarrier 5mo agoThe US can always print money; it's the expected inflation dictates the value of bonds.
- nsvd2 5mo agoWell, yes, but that's another way of saying the same thing. If the US can't pay and is forced to devalue their currency, thus tanking the value of your investment, you lose money. Therefore, the likelihood of this drives interest rates up.
- clearstack 5mo ago5% on the 30-year raises the risk-free rate, which changes the equity discount rate. a 40x stock looks very different at 5% vs 2%. growth stocks re-rate when yields move
- pseudohadamard 5mo agoWill the US still be in any shape to be pay out in 30 years? That's a serious question.