Increasing Bond Rates

This is very interesting given that increasing rates means decreasing prices for the bonds being offered.  This will be reflected in a greater cost to the federal government in terms of interest paid on the debt.  Right now that means that the deficit will increase that much faster.  Any movement by the Fed to print (i.e., buy bonds) will push commodities, especially crude oil, even higher.  So the federal government and the Federal Reserve have their butts in a crack.  This has been the case for a long time, but the instability around the Straits of Hormuz and the environmentalist choke-hold on new domestic sources of oil makes it more grossly evident.  The rate over 1% in the 5 year is a significant move up from yesterday not to mention last week. 

This is a snapshot.  Click on the table title to see the current state via Yahoo.

US Treasury Bonds Rates

Maturity	Yield	Yesterday	Last Week	Last Month
3 Month	0.05	0.05	0.06	0.06
6 Month	0.13	0.13	0.12	0.12
2 Year	0.38	0.34	0.30	0.28
3 Year	0.57	0.49	0.41	0.39
5 Year	1.10	0.97	0.83	0.83
10 Year	2.27	2.12	1.97	1.97
30 Year	3.41	3.27	3.12	3.12