Today's Wall Street Journal: "...the real reason long-term Treasurys rallied is they have become despised as an asset class. [so slightly lower-than-expected inflation news caused a bounce.]... just about any survey of sentiment indicates bearishness toward bonds. Primary dealers -- the firms that deal directly with the Federal Reserve -- are, on balance, betting against the 10-year Treasury note......most Wall Street economists expect long-term rates will be higher in six months. In another sign of bearishness on long-term bonds, professional bond managers surveyed by ISI Group show a marked preference for short-term Treasurys."http://online.wsj.com/article/SB114255695641600784.html?mod=mkts_main_featured_stories_hsI am still deciding whether to buy TIPS, at the April auction. The yield of both the 5 and 10 year TIPS has risen, recently, to 2.01% and 2.15%, respectively (the principal is inflation-adjusted). This is still well below the 50-year average of "real" (inflation-adjusted) rates, on long bonds.http://www.martincapital.com/chart-pgs/CH_mmnry.HTMThe inflation differential (the difference between the regular T-Note and TIPS yield) has dropped, over the past couple of weeks (to 2.61% and 2.52%, respectively).Thoughts?Wendy
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates,