30-Year US Gov't Bond Yields since 1977Here is a long term view of long term US Gov't interest rates. Long term is defined as 30 years and is a common bond owned by pension funds and insurance companies and other long term investors with long term obligations.
I highlight the various ranges of interest rates as shown in these 4 boxes and the few moves that temporarily moved interest rates outside those boxes:
1. 1987 Stock Market Crash on collapsing USDollar, hiked capital gains taxes starting in 1988, trade wars with Germany, S&L crisis brewing from 1986 real estate tax law change, and Congressional moves to eliminate interest rate deductions on takeovers.
2. Orange County Bankruptcy
3. Great Financial Crisis "GFC" - massive deleveraging of the banking industry forcing asset prices down in a collapse.
4. Covid reaction by Gov't to shut economy down and stimulate spending and handouts to keep economy afloat
5. Current over-reaction to over-stimulation during lockdowns and supply chain issues.