Rebel Capitalist News Interest Rates Are SKYROCKETING!! Here's What You Need To Know
14 snips
Dec 14, 2024 Rising long-term interest rates are shaking up the economy. The impact on mortgages and economic health challenges common beliefs about interest rates and growth. Historical parallels provide context, revealing how today’s fluctuations compare to past cycles. Dive into the intriguing dynamics of curve inversion and market deviations that complicate our understanding of economic strength.
AI Snips
Chapters
Transcript
Episode notes
10-Year Treasury Yield Impact
- The 10-year Treasury yield significantly impacts the real economy, particularly mortgages.
- Its rise signals changing economic conditions.
Bond Market Cycles
- Bond market cycles typically involve curve inversion followed by a bull steepener.
- This steepening occurs as the Fed lowers rates faster than the long end declines.
2007-2008 Financial Crisis
- During the 2007-2008 financial crisis, the 10-year Treasury yield initially fell.
- It later rose due to a perceived reacceleration of inflation.