The bond market may be wrong, as so many have charged this week regarding the 10-year Treasury Note’s dip to its lowest in more than a year. But this morning’s jobs report for May isn’t making it any easier for skeptics of the recent rally in debt to deliver a knock-out punch to the forces of fixed-income optimism.
Monthly Archives: June 2005
DIVORCE ITALIAN STYLE?
The news doesn’t surprise us. Or does it? In any case, a government official from Italy has suggested the formerly unthinkable in the wake of the French and Dutch rejection of the European constitution, namely: leaving the euro.
GAME THEORY
Game on, says Bob Walters, chief economist for Quicken Loans, in reaction to the latest decline in mortgage rates and the related rise in loan inquiries, reports Bankrate.com. Real estate may be a bubble, as many pundits have charged, but if so then it’s also true that ours is a bubble-friendly climate.
THE NEW NEW BULL MARKET IN BONDS
The yield on the benchmark 10-year Treasury Note turned more than a few heads today by dipping to under 3.9%– the lowest since March 2004. The not-so-subtle message: the economy’s cooling, and so it’s safe for any and all bond bulls to come out of the closet.