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MUST READ article for income investors
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Wednesday, May 06, 2009
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By Tom Dyson in DailyWealth

The chart is of the long-bond yield. The "long bond" is the nickname for the 30-year Treasury bond.

As I wrote in my last essay, long-bond prices are plummeting right now. They have just broken down to new five-month lows... and the selling pressure is so strong, not even the Fed's printing press can hold prices up.

When the long bond falls in price, its interest rate rises... The long bond's yield was as low as 2.5% in December. It has now risen past 4%. This could be a huge problem for income investors.

Read full article...

More posts on income investing:

Income alert: A safe strategy that will yield over 15% this year

Marc Faber: "Gov't bond market is a disaster waiting to happen"

Get paid 20% per year to "rent" out your gold

Topics: Bonds | Tom Dyson | Income Investing
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