Wednesday, March 15, 2017

Chart Talk {03.15.17}

With the Federal Reserve meeting today and an interest rate increase expected, I thought we'd take a look at historical interest rates.  This chart from "Chart of the Day" shows rates going back to 1900.  Here's their take on the subject:

"For some perspective on long-term interest rates, today's chart illustrates the 117-year trend of the 10-year Treasury bond yield (thick blue line). It is worth noting that the yield on the 10-year Treasury bond has been declining since the early 1980s. More recently, the 10-year yield has spiked to 2.6% and is now testing support of its 20-year downtrend channel. One point of interest... Spikes in long-term yields tend to be a relative negative for the stock market as it tends to discourage investment while increasing the burden of existing debt. For example, the last two times the 10-year yield hit (early 2000 and 2007) support (green line), the stock market soon followed with a major decline."

Link:  Chart of the