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  1. sf, nothing new in that article. You can always do a small hedge by investing in gold etf’s if you’re worried.

    dibs, I have noticed my TIPS have been creeping up ever so slowly, after doing dick for a coupla years.

  2. Long term rates could start to rise (yield curve steepens) if any of the auctions start to sputter or if inflation starts to show. As Dave mentioned, the Fed really only controls the starting point of the yield curve. Lots of other things go into its shape.

  3. slopefarm,
    The NYT article agrues for the Fed keeping interest rates low for as long as they can get away with it (i.e. there is enough demand for US debt). I think that a rate rise in the first half next year is unlikely.

  4. slope, to the extent that the Fed has control over interest rates it is at the very short end. I think consensus is, and out belief too that short rates will stay low into 2011. I expect 5-30 year rates to start rising. I’ve thought that for awhile now and so far have lost money on that hedge.

    I think the consensus is right. The Fed won’t raise rates until a rcovery is well entrenched and they’ve got history behind them on that.

  5. DIBS and the rest of you real fianancial/investment types:

    At the risk of bringing out the crazies, I see the market is going up again today, but I found today’s NYT story on the US being overloaded on short-term low rate debt a bit disconcerting. What kind of interest rate rises are you anticipating in the first half of 2010 and to what extent do you expect those rises to put the breaks on recovery? What has the market priced in about this?

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