4 replies to this topic

[dcengr]

For the sub prime and ARM people to get relief, rates need to go down... But treasury rates are going up Maybe china is finally unload its gigantic wad of treasuries it said it would diversify. What about the buck? Forget about the stock market.. if the buck drops too much, Benny is gonna have a stroke.

[Islander]

For the sub prime and ARM people to get relief, rates need to go down...

But treasury rates are going up

Maybe china is finally unload its gigantic wad of treasuries it said it would diversify. What about the buck? Forget about the stock market.. if the buck drops too much, Benny is gonna have a stroke.

----------------------------------- They read the Fed Comments too quickly. It said something like we are still worried about inflation, but even more worried about the subprime. Essentially, they said nothing, or whatever you want to believe. Today for example the bonds desks have decided that no rate cut is likely and are digging in again expecting a rate hike in the fall. The usual double take.

[pedro]

For the sub prime and ARM people to get relief, rates need to go down...

But treasury rates are going up

Maybe china is finally unload its gigantic wad of treasuries it said it would diversify. What about the buck? Forget about the stock market.. if the buck drops too much, Benny is gonna have a stroke.

Doesn't surprise me. Fed not raising short rates ... means cheap money hangs around ... means inflation continues ... means inflation premium actually grows ... which taking supply and credit demand as stable ... means longer term rates must rise.

If the Fed hiked short rates, long rates would FALL. (Toward yield inversion.)

[da_cheif]

For the sub prime and ARM people to get relief, rates need to go down...

But treasury rates are going up

Maybe china is finally unload its gigantic wad of treasuries it said it would diversify. What about the buck? Forget about the stock market.. if the buck drops too much, Benny is gonna have a stroke.

Doesn't surprise me. Fed not raising short rates ... means cheap money hangs around ... means inflation continues ... means inflation premium actually grows ... which taking supply and credit demand as stable ... means longer term rates must rise.

If the Fed hiked short rates, long rates would FALL. (Toward yield inversion.)

By not raising rates....tells the markets that inflation wont be fought....thus rates will go up...they are delaying the inevitable and the market knows that.....snort

For the sub prime and ARM people to get relief, rates need to go down...

But treasury rates are going up

Maybe china is finally unload its gigantic wad of treasuries it said it would diversify. What about the buck? Forget about the stock market.. if the buck drops too much, Benny is gonna have a stroke.

Doesn't surprise me. Fed not raising short rates ... means cheap money hangs around ... means inflation continues ... means inflation premium actually grows ... which taking supply and credit demand as stable ... means longer term rates must rise.

If the Fed hiked short rates, long rates would FALL. (Toward yield inversion.)

yup.....you got that rite....

[89S10]

According to the Bloomberg site, expected inflation went up today on 5- and 10-year Treasuries. Five-year premium was 2.45% yesterday; 2.47% today. Ten-year premium was 2.40 yesterday; 2.42% today. The "premium" is the amount that nominal Treasury yields exceed inflation-protected Treasury yields.