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10 Year Treasury Under 3.0%

hank
edited June 2011 in Off-Topic
10 year Treasury this morning is sitting at 2.98%. Not being savvy bond person like some here am amazed at these persistent low yields even in face of the stock market run up and big govt. debt. You'll recall Maurice's recent question about whether youd lock in a guaranteed government return of 3.0%. Well, heres your opportunity. Evidently lota folk think thats a fair trade ... 3% for 10 years guaranteed by Unc Sam. Myself, would be more inclined to do a nice refi at these rates. 15 year fixed currently available well under 4%. Seriously doubt you wont do at least that well in even conservative funds over next 15 years. Honestly, 4% aint a big return, especially when ya see where gas, food, and medical care are going. Sure I'm missing something here. Somebody can fill in the gaps. Just serving up food for thought. Good day.

Ancient Chinese Proverb: He who hesitates is lost.

Comments

  • catch22catch22
    Okay.............so, what'ta ya think.............makes one wonder about ESP and such.

    Catch
  • hank
    edited June 2011
    Morning Catch. Was editing earlier post a shake when you responded. Damned if I know what to think. Trend in prices is scarey and not at all consistent with low Treasury Yields. Re Refinance: We're in a position where we choose to maintain a modest (under 50%) mortgage long as rates are low. And we're pretty confident we can do better investing that money in diversified funds than paying off the house. Currently hold a 4.5 so aint gonna pay to do anything unless rates get down bit lower. Just watching. Appreciate the value & appeal of having a home paid off in full and wouldnt attempt to persuade anybody otherwise. Like I said, depends on your personal preference.

    Have long been a "Doubting Thomas" on bonds. Despite owning very few AA bonds in recent years we've done OK with our other assorted funds. Hats off to you for your persistent bond holdings and success. BTW: Tune out the talking heads. Today its all about the coming depression and plunging rates. Next week it could be about the coming inflation and rising rates. Take Care, hank
  • beebee
    Hank,

    I have a short story...I have owned my home momentarily twice over the last 25 years. Each time I was close to not having a mortgage payment I felt that I could do better refinancing the equity in my home by paying principal plus a 4ish% interest rate than just letting the property sit without a mortgage. My home is humble and my cash outs have been 80% of the its appraised value and most recently I have refinanced a 30 year fixed loan at 4.375%. I will try to discipline myself to pay it off the mortgage in 10 years. In the mean time I have a lump sum of money that I can position in anyway I see fit. This to me is a form of diversifying my investments. I have a significant property tax bill (high property tax state) along with this mortgage so I never really feel as though I am a property owner. Instead, I look for opportunities to put the equity in my home to work. Rate seem historically low right now so I agree that this is a great time to put your home equity to work.

  • [Deleted User]
    The user and all related content has been deleted.
  • [Deleted User][Deleted User]
    The full faith and credit of the US isn't what it used to be. I would take the "guarantee" with a grain of salt.
  • hank
    Sorry to misrepresent your earlier thread/question. Thanks for the correction Maurice.
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