I would also argue that this continues to support credit markets as the slower growth is known and now duration risk is mitigated. As rates stay low, it also supports mortgage performance as they will not extend. I would continue to be long credit and Treasuries (more so in the 10yr T than the long bonds).
This is my effort to help fit the pieces together to get a better picture of the capital markets.
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
Tuesday, September 21, 2010
10yr Treasury Rally
The ten year is rallying nicely with the Fed announcement. Additional purchases, low inflation and no sign of rate hikes supports current levels.
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