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Thursday, May 28, 2009

Bonds is where the action is....again

I posted a quick comment yesterday that the US Treasury interest rates are rising, and Ben Bernanke will have to choose the US poison, high interest rates with crippling housing collapse from here, or yank the rug out from the market to create demand for US Treasuries.

Today, interest rates rose significantly, and the mainstream media is picking up on what I commented yesterday, Mortgage-Bond Yields Jump, Jeopardizing Fed’s Housing Effort.

Let's hope the market falls significantly bringing down interest rates, and the US Government cuts back tremendously on it's debt spending. Bonds don't get much main stream media attention, but it is where the action is. If you own TBT, it may be a good time to get protective on profits.

Sudden Debt has some good analysis on rates, 2 year vs 10 year (click).
See Mish for his own spin on Bond interest rates.

Gold miners may get a major smackdown in a deflationary collapse, so I would not add to any gold miner positions. Nor will I take any off. :)

From WebSurfinMurf's Financial Blog

Ben, praying won't save the USA, and your college thesis is wrong, you can't avoid the US taking losses for fraud and uncontrolled spending.

From WebSurfinMurf's Financial Blog

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