silverspring

High Yield Spreads Down 20% from St. Patrick's Day High

What do you mean as long as the spread can continue to come in? The spread of the HY comes down? Thanks.

A Warning in the Bond Market

Yes, it is a worrisome sign, however this could be natually solved after you see many bad earnings report in near future, commodity negative effect... All these forces will bring equity market down, volatility up which will bring the yield down. Any comments?

Is Rising Inflation Creating a Headwind for Long Bonds?

Commodity price pressure is the one which will cause inflation anyway in medium term, therefore affects bond yield to go up in the similiar term (fight inflation!). Shorting 5yr bond and at the same time buying 2yr bond should give us positive MTM provided current credit crunch will continue for another year which forces Fed to ease overnight rate more. In short, play with the balancing process of inner force of Fed's rate easing and outter greater force of international commodity market.