Bond prices are much higher (interest yield and rates much lower) on continuing European news. All of the technical resistance points have been blown out, even of this morning’s expectations, which points to a significant trend toward lower interest rates (higher bond prices.) We’ve already passed the technical points of 3.21%, 3.18%, and as of this writing (3.11%) are on our way toward 3.09%

The concern is that the EU is so divided it wont be able to develop a coordinated plan to deal with the debt crisis, which reinforced the conventional wisdom the crisis can’t be contained — and thus increasing the chance of a euro zone breakup. Thus, money is flowing to perceived “safer haven” vehicles — the US, at this time.

I would not lock rates at this time.

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