1981: 20-year Treasury bonds at a 15.78% yield

Today in 1981: Uncle Sam issues new 20-year Treasury bonds at a 15.78% yield, an all-time record-high interest rate for any U.S. government issue. Analysts say they expect that yields will have to go higher “to attract stronger demand.” Yields promptly begin going down, and keep going down for the next twelve years.

Source: Daniel Fuss, manager, Loomis Sayles Bond Fund; Sidney Homer and Richard Sylla, A History of Interest Rates (Rutgers Univ. Press, New Brunswick, NJ, 1991 ed.), p. 384; New York Times, Oct. 1, 1981, p. D12.

Jason Zweig,

 

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