SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : JDS Uniphase (JDSU)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jill who wrote (4502)1/16/2000 11:18:00 AM
From: Guy Gordon  Read Replies (1) of 24042
 
RE ".25% priced into the bond market"

The next Fed move has become irrelevant. The bond yield is already higher than a .25% raise would push it, so their next move will have no effect.

The reason is that yields are going up because no one wants to own bonds anymore. With stocks performing so well, why should they? So bond yields have to go up to compete.

Some of the talking heads have figured this out, but most of them still miss it. Those are the ones who are telling you that the market is pricing in a .50% raise. They see interest rates going up, but they don't know why. It's lack of demand, not supply driving them.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext