Tag Archives: bond yields
Anxiety is building in the bond market — a sure sign that a good buying opportunity isn’t far off.
Traders were greeted this morning with the unpleasant news that import prices shot up 2.3% in September. If that pace kept up for a whole year, we would be looking at a 30% inflation rate in foreign goods. Shivers!
The stock market finally looks as if it’s ready to mount a decent rally. Bond yields have nosedived over the past few weeks, improving the relative valuation of most stocks. Meanwhile, the pullback in the major stock indexes is gradually losing “oomph,” a sign that a tradable bottom should now be at hand.
An event of historic significance is unfolding before our eyes — and I’m not talking about the chase for Saddam Hussein. Prices for Treasury bonds have crashed in the last six weeks. Since mid-June, the yield on the benchmark 10-year T-note has soared almost 40%, the biggest rise in such a short period since the great bull market for bonds began in 1981.