The Long View On Government Bonds.

By BusainessInsider

One thing I constantly hear is “interest rates only have one direction to go – UP!”  There’s this myth that t-bond yields and interest rates in general just have to go higher.  But history does not prove this at all.  In fact, history tells quite a different story. 

The chart below helps put things in perspective.  Since 1871 US Treasury Bond yields have averaged 4.3%.  Today’s rates of 2.8% are certainly lower than that, but not at record lows.  We’re still about 1% off those levels seen at several points in the past 125 years.