Taking a Peek at Interest Rates – 10 Year Treasury – Short and Long Term Look

Low rates are great. However we have argued multiple times, low rates too long can cause more damage than good.

Higher rates … increasing moderately, NOT super fast is the perfect scenario.

10 Year Rate Peek

Over the short term, the much watched 10 Year Treasury Rate looks like it is on a tear… maybe even moving too fast …

1-22-18 10 year - 1 year graph

While we peek at the short term, turning points are more important over the LONG term ..

Here is a longer term chart …

1-23-18 10 Year Long term

The white line on this chart is what is called a trend line. Many call this stuff VooDoo … Let’s liken this to momentum in a sporting event… hard to define, but certainly existent.

Keep an eye on the far right corner of this chart … if it continues, then we may be headed for a sustainable period of longer term rates … Good if it occurs slowly.

Have a Great “Higher Rates” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.

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