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David Sims
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David Sims is a full-time independent analyst and contributor on popular investment sites such as Seeking Alpha. David covers distressed equities and activist investing campaigns most recently. In the past, covered topics included covered call trading and the housing market. David is Certified... More
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  • 10-Year Treasury Yield Hovers Near Historic Low 0 comments
    Jul 3, 2012 10:38 AM | about stocks: TBT

    The 10-Year Treasury yield is now around 1.61% and appears to be finding an equilibrium trading near this price point. The historic low for this bond yield is 1.44%, which was reach June 1st, 2012. The Federal Reserve Bank's extension of Operation Twist through year-end should have an impact on holding this rate low for a few more months.

    (click to enlarge)

    If housing begins to turn upwards, or inflation heats up, look for this rate to creep up, in anticipation of action by the Federal Reserve. In the meantime, borrowers will be refinancing and purchasing excess housing inventory.

    The ProShares UltraShort 20+ Year Treasury (TBT) closely tracks this bond by mimicking the price movement with the inverse relationship to the Treasury Note.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: TBT
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