Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (66866)	10/19/2003 8:42:10 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

That's from Doug Noland's credit bubble bulletin prudentbear.com "The interest-rate markets were hit by a bit of reality this week. The December 2004 3-month Eurodollar yield jumped 36 basis points to 2.615%. The 2-year Treasury yield surged 23 basis points this week to 1.86%, the highest yield in more than one month. The 5-year yield jumped 19 basis points to 3.33%, while the 10-year yield increased 14 basis points to 4.39%. The long-bond saw its yield increase 6 basis points to 5.25%. Benchmark Fannie Mae mortgage-backed yields rose 12 basis points. The spread on Fannie’s 4 3/8% 2013 note increased 1.5 to 43, while the spread on Freddie’s 4 ½% 2013 note widened 1.5 to 42. The spread on 10-year FHLB debt narrowed 6 to 33. The 10-year dollar swap spread added 0.5 to 43.5." Looks like rates went up last week. Check interest rates futures - they are predicting Fed funds rate will stay put for 6 months or so, at least. I believe, at some point soon rates will be set by the Market, not the Fed. Then, we'll see a real disaster in stocks and bonds. 10-year rates could go up to 7%, if 4.62% is broken. I don't think I could tell how high they might go. (They were 15% in Britain when the pound crashed in 92) I think the tide has turned in mid-June this year. It means, further carnage to follow in bonds, very soon. And, what's worse, there is absolutely nothing the Fed or anybody can do about it.