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Ten Year Rally Supports Credit

The ten year is rallying nicely with the Fed announcement.  Additional purchases, low inflation and no sign of rate hikes supports current levels.


 


I would also argue that this continues to support credit markets as the slower growth is known and now duration risk is mitigated.  As rates stay low, it also supports mortgage performance as they will not extend.  I would continue to be long credit and Treasuries (more so in the 10yr T than the long bonds).



Disclosure: no positions