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March 4, 2006


Long and Short Interest Rates

Here’s a monthly chart overlaying the 10-year Treasury Note Yield and the 13-week Treasury Bill Yield since 1990. These two rates haven’t inverted yet (the last time they did was in August 2000). Short-term rates falling as fast and as low as they did between 2001 and 2003 created a global boom. I think the Fed cut rates too low and kept them there for too long, but what do I know?

TNX and IRX

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