Thursday, March 3, 2011

30 Year Rates Back Below 5%

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Rates were on the rise for what seemed to be the trend for the rest of the year. Inflation will cause this trend to continue. However, thanks to some unrest in Libya investors have been overly cautious with their capital and pouring more funds into bonds than normal. This allows banks to have more money to lend and keeps rates down. This is only a short window. The regular trend of inflationary rising rates will be back.

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