Saturday, July 30, 2011

Prospective "Default" = Rising US Bond Price?

Remember the crap-ola?

"Your mortgage rate will be ....umnhh........45%........or something.......really high, yup."

"Dow will drop to .......ooooohhhhh......... 5,000, or maybe 6,000.........who knows? Doom!!"

Uh huh.

Treasuries surged, driving 10- and 30-year yields to the lowest levels this year, as U.S. lawmakers deadlocked over raising the debt limit and the economy grew more slowly than forecast. Benchmark 10- and 30-year debt rose in July the most in almost a year, and Treasuries’ returns recouped all of their June losses. At the same time, rates climbed on bills maturing just after the Aug. 2 debt-cap deadline

Think maybe the Obozo down-low message to the traders got through?

3 comments:

J. Strupp said...

Oh so now youre paying attention to the bond market and forming an opinion based off it's performance? Gimme a break.

J. Strupp said...

Exactly.

Dad29 said...

Which question do you answer, O Strupp?

Now we await the Great Inflation...