Right. In my view it's better to lock in relatively low 10 year (or better yet 30 year) rates rather than roll the dice on interest rates rising. Rates can easily rise to long term norms of 5%.
The market is anticipating that rates will rise, hence the nature of the yield curve.
If the government's assets are long term, shouldn't the liabilities match it?
The market is anticipating that rates will rise, hence the nature of the yield curve.
If the government's assets are long term, shouldn't the liabilities match it?