120% mid term

L1: 120% mid termCould you explain what the basics are determining the federal mid term rate? Will the rise in 30-year U. S. treasury bonds have any effect on this rate? What are the factors to make a prediction of how the rate my move over the next year?2003-09-10 12:58, By: Bob, IP: [127.0.0.1]
L2: 120% mid termHello Bob:
Technically, the mid-term rate (as defined by 1274(d)) is the average yield of outstanding US Tresury debt with a maturity of “over 3 years but not over 9 years”. Further 1274 orders the Treasury to measure this, as well as short term and long term rates & publish them once per month.
Now the actual formula is a secret; at least I have not been able to find anyone to disclose the actual mathematics involved; however, I don’t think it’s real important — just watch the 5 year treasury note & you will have a pretty good idea of what’s going to happen.
Regarding the prediciton of future rates, your guess is as good as mine. I think interest rates have an upward bias looking forward 6 – 24 months; however, even I don’t know what’s going to happen next week.
TheBadger
wjstecker@wispertel.net

2003-09-10 13:09, By: TheBadger, IP: [127.0.0.1]

L2: 120% mid term
The following link will take you to the ”interest rate forcast page” from a firm called “RBC capital markets” They supposedly forcast various rates thru end of 04 They say 5yr treas s/b 5.2% by end of 04 ***** take it for what it”s worth!! ***

http://www.rbccm.com/0,,cid-11925_,00.html

Thx, Bob_B2003-09-10 15:46, By: BobB, IP: [127.0.0.1]