As shown in this chart of the 30 year U.S. bond futures, we are seeing prices fall as the interest rates begin to rise. This is significant, because unlike the short-term interest rates, the Fed is much less capable of manipulating long-term interest rates. The added cost to finance U.S. government deficits is beginning to have an effect, and the interest cost to the American tax-payer is beginning to rise. Thursday, January 22, 2009
Long Term Interest Rates Starting to Rise
As shown in this chart of the 30 year U.S. bond futures, we are seeing prices fall as the interest rates begin to rise. This is significant, because unlike the short-term interest rates, the Fed is much less capable of manipulating long-term interest rates. The added cost to finance U.S. government deficits is beginning to have an effect, and the interest cost to the American tax-payer is beginning to rise. 
