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Interest rates

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Byjohn

L1: Interest ratesGFW, I noticed that the estimated interest rates have gone down from 6.24 to 5.83 in the last 3 months. I was wondering is there any single factor in the formulation that contributes to this the most? I guess what I am asking is if I was thinking about starting a SEPP 6-12 months from now, is there any way to get an idea which way the mid-term rate is headed?2006-08-31 06:49, By: John, IP: [207.138.81.21]
L2: Interest ratesHello John:
Actually, the AFR”s are computed & published by the US Treasury; then, the IRS uses this base data to publish its monthly bulletin of short/mid/long AFRs that are used in 100”s of different Internal Revenue Code sections. I say this so that everyone realizes that AFRs are not made up numbers; they are a real reflection of what is happening with the pricing/yields of various US Government obligations in the marketplace.
The easiest way to get a handle on what is going to happen with the mid-term AFR is to turn on CNBC or Bloomberg and watch for yield quote on the 10 year treasury bond which right now is around 4.90% and multiply that number by 1.15 to 1.2. Two months ago the 10 year treasury was around 5.15 or so. In the intervening time period the long end of the yield curve has come down thus the mid-term AFR is also coming down.
If I could predict where the 10 year treasury would be in July, 2007 I would be having dinner with Warren Buffet; unfortunately my crystal ball is broken.
TheBadger
wjstecker@wispertel.net
2006-08-31 09:26, By: TheBadger, IP: [72.42.66.36]

L2: Interest ratesBill:
My crystal ball does double duty by sitting on my desk and dispensing paper clips.I bet that Igetthe same good information from my crystal ball as you get from yours.
Jim2006-08-31 09:35, By: Jim, IP: [70.184.2.72]

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