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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: pcyhuang who wrote (43401)	6/11/2006 9:40:50 PM
From: Return to Sender	Respond to of 68360

>1. "a spread of greater than 3.5% usually supports higher stock prices". Why?< The reason here is simple. When the spread is less steep then investors may find shorter term bond yields more appealing than investments in the stock market. But I did not write the statement you quoted even though I understand why you think I did. It came from here: tal.marketgauge.com >2. I think many market participants are more concerned with the 30-yr minus 10-yr spread. Any comments?< I don't know why these market participants are more concerned with the 30-yr minus 10-yr spread but as far as I am concerned any time a shorter term bond or treasury has a higher yield than a longer term one we have a big problem called an inversion. Here is a great place to track that data. treas.gov Right now the problem is the 6 month, 1 year and 2 year bond. They all have higher yields than longer term bonds up to and including the 10 year bond. This implies a greater risk of an upcoming economic downturn and a probable recession. RtS