Bond Market Collapsing

EconomicsBriefing.com ^

[NaturalGorilla]

In the face of the rate cuts by the Federal Reserve yesterday, long-term bonds are collapsing.

The bond market views the rate cuts as highly inflationary.

[golfisnr1]

Vultures!

[1Old Pro]

In the face of the rate cuts by the Federal Reserve yesterday, long-term bonds are collapsing.

Or written another way, Fed cuts short term interest rates and long term rates rise on market fears of perceived increase in inflation. We'll see, I see it as a buying opporuntiy in bonds.

[Old_Mil]

The bond market views the rate cuts as highly inflationary.

That's because they are. As CNBC said, "we have a housing recession, this stops a housing depression." Maybe. It takes 3 months for ARMs to adjust. Either way, the Fed has chosen hyperinflation.

[Broker]

This post is really misleading. Government bonds and Muni Bonds are off slightly. The FED cut postponed the eventual back debt “day of reckoning”.

Not collapsing today.. So all you chicken littles can go back to pecking on OJ or better yet, find out what in the world the Israelis really bombed in Syria.

[Hydroshock]

You would have to be blind not to see this coming.

[NeoCaveman]

The yeild on the 10 year is still lower than it was in April and way lower than they were in June.

http://finance.yahoo.com/q/bc?s=%5ETNX&t=6m

[Petronski]

Either way, the Fed has chosen hyperinflation.

[NeoCaveman]

I’m going to go corner the wheelbarrow market and make big profits.

[NeoCaveman]

The fed funds rate is still HIGHER than the 10 year treasury yield.

If there were inflation expectations, then the 10 year should be yielding much more than just the fed funds rate.

[Tijeras_Slim]

[Petronski]

Just around the corner.

[Toddsterpatriot]

Yields on the 10 year Treasury have risen to levels not seen since early September. If that's not proof we're doomed, them I'm not Hydroshock.

[NeoCaveman]

Buy gold?

[Hydroshock]

Yes, and if it gets worse buy ammo. ;)

[dighton]

Coming soon,

Distressed Bondholders Forced to Open Brothels

[editor-surveyor]

"Either way, the Fed has chosen hyperinflation."

This is the quickest way to bring the dollar down to the level of the peso, so that the North American Union can proceed on schedule. George Bush doesn't have much time left, so expect many more rate cuts in the months to come.

[Toddsterpatriot]

them *then*

[Toddsterpatriot]

LOL!

[NeoCaveman]

I was being sarcastic :)

If things keep getting “worse”, I’ll be retiring early and partying like a rockstar.