adios
02-09-2005, 07:30 AM
Bond Yields (http://bonds.yahoo.com/rates.html)
The spread from 2-10 yr treasurys was 72 basis points at the close yesterday. One year ago the same spread was around 235 basis points. The 30 year is now yielding 4.36%. The 10 yr hasn't cracked 4% for awhile now so we'll see. The Fed is on a course to bring short term rates somewhere higher than 3%, some say higher than 4%. Is a yield curve inversion in the offing? I can't see how economic growth in the U.S. will be all that strong given the shape of the yield curve but certainly do your own due dilligence. The U.S. $ seems to be showing a little strength in here. All in all FWIW I'm not that enthusiastic about equity prices as the indicators I use are at best neutral and at worst say SELL.
The spread from 2-10 yr treasurys was 72 basis points at the close yesterday. One year ago the same spread was around 235 basis points. The 30 year is now yielding 4.36%. The 10 yr hasn't cracked 4% for awhile now so we'll see. The Fed is on a course to bring short term rates somewhere higher than 3%, some say higher than 4%. Is a yield curve inversion in the offing? I can't see how economic growth in the U.S. will be all that strong given the shape of the yield curve but certainly do your own due dilligence. The U.S. $ seems to be showing a little strength in here. All in all FWIW I'm not that enthusiastic about equity prices as the indicators I use are at best neutral and at worst say SELL.