After a bit of a hiatus, here we @Lisa Gee talk about 10 year yields.
Until now, we had this tendency to front-run RV with the topics we discuss, but RV recently put out an explainer video on Treasury yields, front running us this time haha; Hopefully what we talk about here is complementary to the content on that video.
This topic was suggested to us by @Sam Colt .
Forgive the hiccup in audio at around the 1:50 - 2:20 minute mark, I subtitled what the tl;dr summary of what I said was.
If you have any requests for future topics, or would like to come on as a golden retriever, either to explain something or have something explained, let us know!
Explain Like I'm a Golden Retriever: UST 10-yr Yields
In this episode, you will learn:
- Why the 10yr UST functions as an economic indicator.
- Why people call the bond market the "Chart of Truth."
- The yield/price relationship with two easy-to-remember cheat sheets.
- What global negative-yielding debt and Fed purchasing means for UST's.
- How to think about bonds in a portfolio.
- The difference between "nominal" and "real" yields.
- The relationship of yields to the price of gold.
@Weston Nakamura Shared this nice bit of info which I will copy verbatim here, regarding how to buy treasuries directly at a bond auction:
I usually tell everyone to go to TreasuryDirect.gov and take 80 seconds to set up an account direct with the US Treasury dept, and then participate in a bond auction- which you can do for min $100, buy at auction and leave it there until maturity while collecting your yield direct from the source - no middle man broker etc
Charts and graphs for this episode included below:
US 10 Year Real Interest rate chart taken from:
Which just takes data from
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield and plots it for you.