IMPLICATIONS OF LOW TO NEGATIVE INTEREST RATES

Interest rates around the world have declined to some of the lowest levels in my lifetime of 70 plus years. The 30-year U.S. Treasury was at its lowest yield ever in August1 since being first issued in the mid 1980’s. The long-term (30-year) U.S. Treasury is selling at a yield that is about ¼ of [...]

2020-03-23T12:46:56-05:00September, 2019|George Karpus, Published in the Daily Record|

Not Even Experts can predict the direction of Interest Rates

At the end of 2018, the interest rate on a 10-Year Treasury bond was 2.7%. The belief among professionals at this time was that interest rates would rise in 2019.1 These economists believed Trump’s tax cuts and continued economic momentum would ignite growth and inflation, thus higher interest rates. Very few of these professionals forecasted [...]