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January 2011

The Bond Bubble – Sources of Pressures on U.S. Interest Rates

The conventional wisdom is that, after nearly 30 years of decline, U.S. interest rates have nowhere to go but up, and rising interest rates are bad news for bondholders, especially those who hold longer term maturities.  (As rates rise, bond prices fall with the severity of the fall directly related to time to maturity.)  This blog outlines existing upward and downward pressures on bond rates and outlines emerging issues which …Read More