The Price of Money
The Price of Money: Bonds, Yields, and What Rising Rates Mean
The Price of Money: Bonds, Yields, and What Rising Rates Mean
This week's blogpost - https://bahnsen.co/4s5VJwC
Trevor Cummings hosts the Thoughts on Money podcast with Brett Bonecutter and Blaine Carver (“Joe Bob”) to explain bond yields and interest rates through a scripted “table read.” They frame interest rates as the price of money, shaped by supply and demand, time, risk, and expectations for inflation and growth. The discussion distinguishes loans from bonds, explains why investors buy Treasuries, and clarifies maturities, the yield curve, and why the 10-year note is a benchmark influencing mortgage pricing via mortgage-backed securities. They note Treasury rates are set by auctions and that the Fed targets the overnight federal funds rate, mainly affecting the short end while markets price longer maturities. They address how rising yields lower existing bond prices, why predicting rate moves is difficult, why recent yield spikes may relate to bond supply (including corporate issuance tied to AI), and how current yields improve forward bond return prospects despite recent declines.
00:00 Welcome and Setup
01:00 Table Read Begins
01:17 Price of Money Basics
03:03 Loans vs Bonds
04:49 Treasuries and Yield Curve
07:10 Who Sets Rates
08:39 Investor Takeaways
10:06 Fade Out and Debrief
10:57 Why This Article
13:46 Why Bonds Move
17:12 Fed vs Market Dynamics
26:40 Bond Portfolio Math
30:16 Opportunities and Levers
33:34 Fed Signals Explained
37:43 Wrap Up and Call to Action
Links mentioned in this episode:
Trevor is a Partner, Director of our Private Wealth Advisor Group, and Author of Thoughts on Money.
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