Thursday, December 17, 2009

The Ten Year Yield


  1. Anonymous9:38 AM

    to me, the 10yr and 30 yr are attractive as I expect a defl scare at some pt in 2010. It looks to me that your chart sugegsts the 10 yr is likey to rally in price and yeilds come in - is that correct?


  2. The chart is showing that we are in the process of consolidating the huge gains which brought yields to new lows in 2008. So we move sideways to down on yields in the channel until we break out, at which time I would expect a sharp resumption of the move higher in yields, lower in prices. Thus, we could get a deflation scare and have yields move downward in the channel...