This page is created to monitor the Money Zero Maturity Velocity (MZM velocity) Vs. 10 Year U.S. Treasuries.
Historically, both are correlated. If money velocity picks up (blue chart), 10 Year U.S. Treasury Yields will rise (red chart).
Showing posts with label year. Show all posts
Showing posts with label year. Show all posts
Saturday, 20 April 2013
Friday, 22 March 2013
Just wanted to add another couple of correlations to my collection. We will learn about fixed and adjustable rate mortgages. These are correlated against treasury yields and fed funds rate respectively.
1) Conventional (Fixed) Mortgage Rate Vs. Treasury Yields
As you can see mortgage rates are always higher than treasury yields because U.S. treasuries are considered much safer than mortgages.
2) Adjustable Mortgage Rate Vs. Fed Funds Rate
Adjustable Rate Mortgages on the other hand are linked to the Fed Funds Rate.
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| Chart 1: 30 Yr. Treasury Yield Vs. 30 Yr. Mortgage Rate |
Adjustable Rate Mortgages on the other hand are linked to the Fed Funds Rate.
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| Chart 2: 1 Yr. Adjustable Rate Mortgage Vs. Fed Funds Rate |
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