Forum Archive Index - November 2001

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Marilyn,
>
> 
>The ideal time to buy fixed interest bonds is when yields are high
>but there is always the worry that they may go even lower, or
>alternatively higher and you may locked in at a low yield.
>
>
You are talking about a fixed interest term deposit here, not a 
bond.  A bond does not behave like you describe.

Have a look at the aus.invest FAQ (it is one of Gerry's recommended 
LTI sites) and the section on bonds.  As written by someone who got 
caught in the great bond market crash of the 1990s :-( 
>
>
> 
>My question is what direction do you think that yields will go?
>
> 
> 
I think flat for the next few months, and then upwards.  I can't see 
US interest rates staying below 2% for a huge length of time. SNOOPY




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