Hi, Tulvio, easy ones first, OK? < G > . Yes, 77ish (includes 76) is still my current near term target. Before or after options ex?
I'm not able to "see" that jist yet...
RE: GreenExpand as I call him,
the how is sneaky and rather easy to explain also...
The Japanese Central Banking Authorities (their version of the Fed)
dropped their "prime rate" to 1/2 percent to their best credit worthy customers, i.e., their member bank "customers." Those bankers then spent their "cheap yen" on nothing but US denominated finest, 10 year bonds and 30 yr bonds as well most likely. But their rave favs were the 10yr because that is the most comparable for for yield to a Japanese bond of the 10 yr variety for their hedging risk plays/futures markets offsets and deriatives plays.
Clear as mud?
The bottom line is, our US 10 year bonds are paying roughly 5.6% to
their bond holders (Japanese member banks, insurance companies, etc.,) and they were pocketing a cool 5.1% dif and have consistently been doing so for almost 2 years now.
Aren't we sweethearts?
Now you know the how and the why...
RE: your lack of confidence in the Fed's ability now...do NOT underestimate the power of the Fed. If you go back and study US financial history, you will find that their finest hour was when the then Fed Chief busted balls of the railroad magnates that had brought the US economy and stock market to its knees back in that era and saved the US financial system as well as the markets. Twas the glory days of the famous financier J.P. Morgan.
Yeah, they can do something and do it at will. The question in my mind is not if, but when!!!
O/49r |
