Why is the 30 year lagging behind the rest?

Discussion in 'Fixed Income' started by RGLD, Oct 18, 2021.

  1. RGLD

    RGLD

    I'm not an expert on fixed income. But I find it interesting the 2-10 years are trending heavily downwards but the 30 year looks like it's going to be stable for a while.

    Are we going to see higher Yields in the future due to shortages this season?
     
  2. SunTrader

    SunTrader

    The 10 year is trending steadily downward?

    You're not talking yield are you?
    $TNX.png
     
  3. RGLD

    RGLD

    No, I was talking about price. Which has the inverse relationship with yields. I forgot bond people talk about yields and not bond price.

    upload_2021-10-18_19-19-56.png
     
    murray t turtle likes this.
  4. maxinger

    maxinger

    upload_2021-10-19_9-9-36.png

    you can plot ( zb - zn )

    30 yrs bond - 10 yrs bond/note chart,
    then analyze from there
     
  5. Long end of the curve usually moves less as it's barely influenced by current rate policy, except for targeted QE. Hence the curve flattens in a sell off.

    GAT
    (According to LinkedIn, expert in fixed income)
     
  6. LuckyMac

    LuckyMac

    More data more statistical means that the curve smoother and less susceptible to volatility
     
  7. CannonTrading_Ilan

    CannonTrading_Ilan Sponsor

    From my colleague John Thorpe:

    Why is the 30 year lagging behind the rest? The treasury and fed are simply using this time to rebalance their portfolios September 30 was the end of U.S Government fiscal year.

    The Fiscal rollover tends to over magnify some price short term price action as aberrant., we had a standard yield curve at the end of the 4th fiscal quarter, Sep. 30th

    • U.S. yield curve 2021 | Statista

    The past 3 weeks, the 1st quarter of the 2021/22 fiscal year may be reflecting short term deviations from the statistics above.
     
  8. %%
    Best to talk about bond yields;
    that way we dont have to think about loaning them money for 30 years/LOL:D:D
     
  9. piezoe

    piezoe

    It's 30 years! Would you expect it to go up and down like a yoyo. I hardly think so. Unless of course the fed decides to specifically target the 30-yr.