Skip to main content
No. of Recommendations: 1
Hi Guys,

http://www.thestreet.com/s/kass-sell-bonds-short/newsanalysis/investing/10398942.html?puc=_tscana

Surprisingly, today's 3.68% yield on the 10-year U.S. note is lower than the yield during the recession of 2001. This low yield appears to be artificially affected by a number of temporary and backward-looking factors.

Momentum investors are exaggerating the bond price move. As with the situation in other commodities (gold, silver, energy products, etc.) from 2004 to 2007, I believe momentum traders are piling into the bond trade simply because it is working. This will not be a permanent issue. Momentum investors, as we have recently witnessed, are notoriously fickle and have quick trigger fingers.


rk
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.