The yield curve continues to steepen, the 10-year Treasury up another 3 bps to 1.72% (the...

The yield curve continues to steepen, the 10-year Treasury up another 3 bps to 1.72% (the highest in 2 months). A steeper curve is consistent with a growing economy, writes Vince Cignarella, but does it mean the Fed - hard at work trying to suppress long yields through The Twist - is becoming irrelevant?

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Comments (3)
  • dpolise
    , contributor
    Comments (2) | Send Message
    How low can the TLT go? How high can the TBT go?
    9 Aug 2012, 11:43 AM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
    No it means people or things are dumping them faster than the fed can buy them up at this point..
    9 Aug 2012, 11:46 AM Reply Like
  • irongate
    , contributor
    Comments (100) | Send Message
    the writer is missing the big picture. who gives a flyin flip about the TWIST... the TWIST is just a side show. long bonds are at record highs because liquidity is at record highs... the more the Fed pumps liquidity into the system the more financial assets will inflate. period.


    The fed has been successful in making sure that there is no longer natural price discovery in the capital markets. Think about what has happened since March-09... we have had nothing but economic growth.. Every GDP datapoint is positive... yet instead of investors throwing UST's overboard... they have bid them up to record levels. It is all about the liquidity folks.


    and the only reason we've seen a backup in yields this week is because there was a ton of issuance/supply this week.... once that works its way thru the system... bonds (in price) will resume their uptrend


    Growth is slowing EVERYWHERE and that will lend support for UST's. I continue to believe that a 1% 10yr is more likely than a 2% 10yr.
    10 Aug 2012, 07:29 AM Reply Like
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