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Tag Archives: 10-year T-note

Making Sense of Bonds and Gold

It’s a contradiction—or is it? Two important groups of players in the financial markets seem to be flashing polar-opposite signals. Today, Treasury bond yields plunged to a 10-month low. (Wonderful for our zero coupons!) At the same time, gold prices surged $12 an ounce, to their highest level since early August.

Shakeout for Bonds

The stock market has just lost a good friend. From late June until about two weeks ago, falling Treasury bond yields fired investors’ appetite for a wide range of interest-sensitive stocks, from banks and utilities to real estate investment trusts. Now, suddenly, that impetus is fading.

September 29, 2006

Quite a quarter! Stock prices bounced back strongly this week, handing the blue chip S&P 500 index its best quarterly percentage gain since 2004. We’re very impressed with the market’s resilience here, and we think it bodes well for 2007. Still, as value-oriented investors, it’s important for us to maintain our price discipline.

Well, There You Go

O ye of little faith! When our first signal to buy bonds was tripped October 14, I heard from subscribers who feared that the door might shut before they got a chance to scamper in. Sure enough, the latest wave of inflation jitters pushed the 10-year Treasury yield up through 4.5% again today. We closed at 4.51% for a second, clear-cut buy signal.