From Justin Spittler, Editor, Casey Daily Dispatch:
Interest rates are soaring…
The yield on the U.S. 10-year Treasury note has jumped from 1.37% to 2.3% in just four months.
The yield on the Italian 10-year government bond has more than doubled since August.
Libor, one of the world’s most important benchmark rates, has jumped from 0.61% at the start of the year to 0.91%. It’s now at its highest level since 2009.
Most people wouldn’t think much of this. Some folks might even start dozing if you rattled off these facts. But Dispatch readers know these kinds of moves have a huge impact on the global financial system.
That’s because interest rates are the price of money. When they move a lot, they affect stocks…bonds…property…even the cash in our wallets.
Big moves in interest rates also have a huge impact on derivatives…
Derivatives are securities that derive their value from
