After a massive sell-off that sent the yield on the bellwether 10-year Treasury note skyrocketing to an intraday high of 3.75%, investors snapped up the debt Friday, sending the yield back down to close at 3.465%. That is one wild ride.
Remember that the Fed would like to see the yield below 3%. A rapid increase in the yield is the market's way of rejecting the Fed's monetary stimulus.
It's interesting that the market had such a rapid snap-back. No doubt some investors were seeking bargains. Was one of those investors the Fed?
The dollar is coming apart. Was this a warning shot or the beginning of the final conflict?
Stay tuned...
1 comment:
And today, ^TNX is up sharply, to 3.652%. (A relative swing of over 5%) This is a lot of volatility for this market (or any market, really). Volatility like this can be a negative sign, as it shows a high degree of tension between buyers and sellers.
Post a Comment