Sideways to down
Posted by Don on Jun 1, 2010
Bias is still toward “flight to quality” as things are still very shaky in the Euro zone. In addition, China’s economic reports are coming out pointing to an economic slowdown in that country. Our own reports are showing increasing positive economic news, one item of which is factory orders, which have gone up now ten months straight. All of this moves sentiment (and money)...
Read MoreStable on news. 3.31%
Posted by Don on May 28, 2010
Rates are stable on news. European news includes a downgrade on Spain’s credit ratings from Fitch Ratings, from AAA, which said the country’s debt burden is likely to weigh on economic growth. The ratings were cut one step to AA+. Domestically, news points to the reality that, although recovering, the economy is still in slow recovery. Treasury yields are expected to remain low “this...
Read MoreStable after opening higher.
Posted by Don on May 27, 2010
Interest rates saw a slight rise overnight, but are likely stable in this (as of post) 3.32% range. The European concerns have calmed a little bit; helped by an announcement from China that the Greece situation has not changed their plans for long term diversification into European Assets (read, my beloved Volvo brand, for one.) So the flow to US bonds has ebbed a bit. Moreover, weighing down...
Read MoreLower; but technicals are overbought.
Posted by Don on May 25, 2010
The bond market is markedly higher (interest rates lower) on continuing expectation out of Europe. Spain, widely believed to be the next country under Greek-like distress, has taken over one of it’s non-performing banks. Now, this is isolated, and not systemic; but the fact remains that there are real lingering questions in the investment community as to whether the European assistance...
Read More3.21% is our range.
Posted by Don on May 24, 2010
Interest rates have continued to fall, and have stabilized around this current 3.21% range — which is also the “technical” number. The continuing market mover is the European situation; and although confidence returns that Greece will stabilize its situation (as well as other currently-distresses nations) the investor sentiment still prevails with concern that the allowed...
Read MoreDown, on continued Euro concern.
Posted by Don on May 21, 2010
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...
Read MoreSharply down on continued Euro concerns.
Posted by Don on May 20, 2010
I’ve not posted in a couple of days as I’ve been in the middle of a major project. In the shortest of versions, rates have been strongly coming down as the news out of Europe remains the same: the world community is concerned that this “bailout” is not going to be enough, and that things will spread. Markets don’t like uncertainty. And that will breed fear, and a...
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