Seeking Alpha

After seeing how rising Treasury yields can take the starch out of an equity rally, investors...

After seeing how rising Treasury yields can take the starch out of an equity rally, investors will keep an eye on today's auction of 10-year notes. Yields continue to rise this morning, up another 4 basis points to 3.20%.
From other sites
Comments (5)
  • Papaswamp
    , contributor
    Comments (2216) | Send Message
     
    Mortgage rates just took off...
    8 Dec 2010, 09:49 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    following the German bond sale failure..I can not see it being very good
    8 Dec 2010, 09:57 AM Reply Like
  • Papaswamp
    , contributor
    Comments (2216) | Send Message
     
    If this one comes in weak...then things could get ugly real quick...though I suspect the fed will make sure everything sells to look good.
    8 Dec 2010, 09:59 AM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (553) | Send Message
     
    Well, the bond market has a history of jacking up rates prior to a bond auction in order to pick up new inventory on the cheap. It's not unusual to see big rallies in bonds following a week of bond auctions. The 10 year is today and the 30 year auction is tomorrow.
    8 Dec 2010, 10:00 AM Reply Like
  • Duude
    , contributor
    Comments (3398) | Send Message
     
    Interest rates are rising even while the Fed bids up prices. I suppose in theory the Fed could always match dollar for dollar all the supply with equal demand but that only leads to catastrophe. Zimbabwe and post WWI Germany are good models for the ramifications of this economic planning.
    8 Dec 2010, 11:08 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs