Even with the Fed's reiteration that they were considering outright purchases of US Treasuries, the yield on the 10-Year has been climbing steadily higher from its lows in December. At 2.77%, the 10-Year is approaching yields that it traded at before the bottom dropped out in early December. How we trade in the next few days will go a long way in determining whether the current sell-off is simply profit taking after a massive rally, or the beginning of the end of the latest bubble in asset classes (stocks, real estate, commodities, etc...).
Would the coming 3 to 5% yields play into healing banks borrowing at 0% and making T %'s?
Posted by: Max | January 29, 2009 at 10:35 PM
oh ya the healing is happening...3 to 4 is cool,but they better tap the brakes...could see Fed rate at 1/2% in about 90 days
Posted by: dj | January 30, 2009 at 08:46 AM
This is just a start of a newly success that will be happened on every traders if they will push through. If they will be much more excellent enough in making their own ideas i am pretty sure they will get a big bucks of money.
Posted by: clint | January 30, 2009 at 02:40 PM