Saturday, April 22, 2017

When the ten year is a managed rate

How often is the rate managed?  Mostly by yearly continuing resolutions. Each year they squeeze out what they need to keep current programs running, and are basically avoiding the long term deals. So the rates are not low, the  virtual term is really shorter than ten years. As the senate is increasingly squeezed for cash they are slowly moving toward the short end where rates are lower, but accounts need more frequent adjustment.

I doubt the senate can just raise the debt limit one humongous amount, then go on a long term investment. Interest charges would jump, and they would fall back to continuing resolutions.

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