The Fed Can't Let Bond Rates Get Out of Hand. They've risen quickly in the last few days. The Last Time A Short-Term Bond Cycle Like This Ended, The 10-Year Note Went to 4% Where They Quickly Intervened--But That Was When QE2 Was Still a Reality. This Time It'll Be Different. High Rates Mean Expensive Debt Service
10-Year Note Rate Chart Last Few Days: https://tinyurl.com/3gwn3um
Here's an Excerpt From:
Treasury 10-Year Yields Rise to Month’s High as Greek Default Risk Eases
By Susanne Walker - Jun 30, 2011 2:16 PM PT Thu Jun 30 21:16:23 GMT 2011
June 30 (Bloomberg) -- Jeffrey Rosenberg, head of global credit strategy research at Bank of America Merrill Lynch, discusses the U.S. bond and stock markets, and investment strategy. He speaks with Tom Keene on Bloomberg Television's "Surveillance Midday." (Source: Bloomberg)
Treasuries fell, pushing benchmark 10-year note yields to the highest level in June, as Greece’s parliament approved a second bill to authorize austerity measures needed for further financial aid.
Ten-year notes slid for a fourth straight day in the longest losing streak since February as stocks rose, a measure of U.S. business activity improved and the Federal Reserve ended a $600 billion program of debt buying. Bonds pared gains in the second quarter as the three government note auctions this week drew poor demand.
“We have clearly taken out the Greek risk as far as it impacted Treasuries,” said David Ader, head of government bond strategy at CRT Capital Group LLC in Stamford, Connecticut. “From this day forward, we will have to deal with the Treasury supply on our own. We are adjusting to the new world.”
Yields on 10-year notes increased five basis points, or 0.05 percentage point, to 3.16 percent at 5:14 p.m. in New York, according to Bloomberg Bond Trader prices. The 3.125 percent securities maturing in May 2021 dropped 13/32, or $4.06 per $1,000 face amount, to 99 22/32.
The 10-year note yields touched 3.22 percent, the highest level since May 19. Yields on two-year notes were little changed at 0.46 percent after reaching 0.51 percent, the highest level since May 26. The five-year note yields advanced seven basis points to 1.76 percent after increasing to 1.81 percent, also the highest level since May 26.
Edited by: Jake on Nov 8, 2014 - 5:06am