Dow hits all-time high, closing above 37,000 for first time

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22 hours ago, Mike Lister said:

Bonds don't have interest rates, bonds have yields which are determined by the Fed rate. As the Fed rates increase, new bonds are issued with rates that reflect the higher rate. The value of bonds are inversely corelated to their yields, it is not bond yields that drives equities markets, it is Fed interest rates. The key to both markets, bonds and equities, is the Fed rate.

You sure about that?

 

Treasury Bonds
We sell Treasury Bonds for a term of either 20 or 30 years.

Bonds pay a fixed rate of interest every six months until they mature.

You can hold a bond until it matures or sell it before it matures.

https://www.treasurydirect.gov/marketable-securities/treasury-bonds/

 

That's from the horse's mouth. Anyway, bonds do pay a fixed interest rate. Yield depends on what price they're sold at. Whether they're sold at a discount to their face value or at a premium. 

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2 minutes ago, placeholder said:

You sure about that?

 

Treasury Bonds
We sell Treasury Bonds for a term of either 20 or 30 years.

Bonds pay a fixed rate of interest every six months until they mature.

You can hold a bond until it matures or sell it before it matures.

https://www.treasurydirect.gov/marketable-securities/treasury-bonds/

 

That's from the horse's mouth. Anyway, bonds do pay a fixed interest rate. Yield depends on what price they're sold at. Whether they're sold at a discount to their face value or at a premium. 

I should note that there are inflation indexed bonds on offer as well. Their face value is tied to the CPI but the interest rate remains the same.

Edited December 30, 2023 by placeholder

[Mike Lister]

6 minutes ago, placeholder said:

You sure about that?

 

Treasury Bonds
We sell Treasury Bonds for a term of either 20 or 30 years.

Bonds pay a fixed rate of interest every six months until they mature.

You can hold a bond until it matures or sell it before it matures.

https://www.treasurydirect.gov/marketable-securities/treasury-bonds/

 

That's from the horse's mouth. Anyway, bonds do pay a fixed interest rate. Yield depends on what price they're sold at. Whether they're sold at a discount to their face value or at a premium. 

Yes.

 

I did not say bond yields were not fixed, they are. But the value of the bond (not its redemption value) varies, based on the current interest rate vs the bonds yield.

[Mike Lister]

7 minutes ago, placeholder said:

I should note that there are inflation indexed bonds on offer as well. Their face value is tied to the CPI but the interest rate remains the same.

Yes, TIPS, commonly known as linkers, they have paid off very nicely. 

[Danderman123]

You know the economy is doing well when the Republicans talk about the border.

[candide]

 

Meet America’s Newest Oil-Trader Extraordinaire: Joe Biden

 

https://www.wsj.com/business/energy-oil/president-joe-biden-oil-trader-extraordinaire-e97947fb

 

https://archive.is/MxgIO