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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: mishedlo who wrote (2862)11/3/2001 11:10:14 AM
From: Crimson Ghost  Read Replies (3) of 99280
 
Mortgage rates generally key off the 10-year bond, not the 30-year. 10 year yields fell as slow as 4.1% last week before closing around 4.35%.

If Zeev is right about a sharp equity drop soon, the 10s probably will back down to the 4.1% area again. But once the equity market begins a sustained advance I look for interest rates to commence a sharp rise all across the maturity spectrum. Loading up on long bonds at these levels makes no more sense then loading up on tech stocks when the NAZ was 5000. Would not be surprised to see the 10-year yield at 5.5% or more within 12 months.
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