It's over. Governments and big corporations no longer have borrowed money on tap at the lowest interest rates on record.
In a historic shift, one already under way but amplified by the shock election of Donald Trump, investors have dumped the ultimate risk-free asset in finance, an IOU from the US government.
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The yield on US Treasury bonds this week surged, with 30-year bond yields hitting a 2016 high above 3 per cent, after bottoming in July. The change means investors are demanding more to lend their money to governments and corporate giants alike.
Bond yields, which move inversely to prices, have jumped by more in the past, but many experts say this looks like a key turning point. They believe the era of ultra-cheap credit is coming to an end.
Bond yields, which move inversely to prices, have jumped by more in the past, but many experts say this looks like a key turning point. They believe the era of ultra-cheap credit is coming to an end.
Ride me sideways, who saw this coming?
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Spoke to my sister last night who started a new role in Commercial Finance after leaving one of the Major Banks and she stated that the move in rates has already affected their loan book at the company she's now with. Apparently they have to wear the spread.
Yo mean no one who doesn't own a basic pocket calculator or a phone with a calculator app
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Spoke to my sister last night who started a new role in Commercial Finance after leaving one of the Major Banks and she stated that the move in rates has already affected their loan book at the company she's now with. Apparently they have to wear the spread.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
It will only end when USD ceases to be a world Reserve Currency... until then, it seems, they can print away, reduce tax dollars, spend all they want, and basically treat it like toilet paper.
All of the people who predicted the USD would crash seem to have been wrong so far... perhaps it can go on forever ??
It will only end when USD ceases to be a world Reserve Currency... until then, it seems, they can print away, reduce tax dollars, spend all they want, and basically treat it like toilet paper.
All of the people who predicted the USD would crash seem to have been wrong so far... perhaps it can go on forever ??
For currency issuers, the central banks set borrowing rates, not markets.
Simon hasn't yet worked that out, despite being told by many here.
Take risks - if you win you will become wealthy, if you lose you will become wise
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