real-time news and commentary for investors
Tuesday, Sep 3
Rising Treasury yields welcome at the Fed
- It's not just U.S. data which justifies the big run higher in bond yields, says Goldman's Francesco Garzarelli, but there's even been positive surprises out of Europe.
- The Fed isn't worried about a 10-year yield in the 2.80% area, says Garzarelli - instead it was this spring's bubble-like 1.6% yield which had policymakers concerned. Volatility in fixed income could may be an issue now, but the September taper as well as the introduction of a new Fed chief should calm things a bit.
- Turning to rising long-term rates in the U.K., Garzarelli reminds the British economy "runs very much on variable rates," and as long as the Bank of England holds short rates down, higher Gilt yields should have little effect.
- TLT -1.1%, TBT +2.1%.
- Treasury ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, DSTJ, DSXJ, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX.