One Reason For Weakness
February 12th, 2006 by BWV
| COUPON | MATURITY DATE |
CURRENT PRICE/YIELD |
|
| 2-Year | 4.375 | 01/31/2008 | 99-13¾/4.68 |
| 3-Year | 4.500 | 02/15/2009 | 99-18+/4.66 |
| 5-Year | 4.250 | 01/15/2011 | 98-16+/4.59 |
| 10-Year | 4.500 | 02/15/2016 | 99-09+/4.59 |
| 30-Year | 4.500 | 02/15/2036 | 99-04½/4.55 |
Macroeconomic concerns seem to be the primary reason for the market’s recent struggles. This week the yield curve finally (inevitably?) inverted, with the 2-year Treasury now trading almost ten basis points above the 10-year.
Bernanke speaks to Congress in the middle of this week.. his first appearance as Greenspan’s successor. I’m glad, because we might possibly get some kind of clarity on the Fed rate hike issue. The next FOMC meeting isn’t until late March, and that’s a long time for traders to deal w/ constant banter and opinion about the issue.
