Tag Archives: bond markets

Significant Bond Markets Rally in Progress

‘Tis the season to question whether all the green shoots everyone got so excited about are really weeds. For six months now, markets have been building an expectation of a powerful recovery in all sectors of the global economy.

Bond Market Followup

A very sharp decline got started in medium and long-dated U.S. Treasury debt on the same day that S&P made adverse comments about the sovereign debt of the UK. Some very knowledgeable people suggested the U.S. would be next. The decline gathered momentum and turned into a rout by last Wednesday afternoon.

Bond Market Distress

I’ve been telling people privately to watch the bond market for about a week now. Since last Thursday, we’ve seen a very sharp, fast drop in prices for medium and long-term US Treasury securities, which (in consequence) increases yields. The yield of the 10-year note, which is a critical indicator for mortgage rates, has leapt up above 3.70%, from below 3% just a few weeks ago, and from 2% at the beginning of the year. The yield curve is now steeper than it’s been in decades.

- November 21, 2009 -

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