The RateWatch
 Commentary by Bill Brizendine of Melody Capital MarketsA six-week rally in the Treasury bond market came to an end as the yield on the 10-year UST jumped 7 bps last week to close at 4.96%. That trend is continuing through mid-day trading with the yield nearing the 4.99% mark. In fact, the exhilaration in both the debt and equity markets in anticipation of the Federal Reserve Board meeting last Tuesday began to erode even before the governors, as expected, decided to suspend its 17-meeting run of rate increases. The relief over the pause in rate hikes gave way to concerns about the slowing economy and an expectation that the PPI and CPI –- to be announced tomorrow and Wednesday -- might exceed the Fed’s “comfort level.” If that happens, there will be some heavy betting (in the form of rising interest rates) on the Fed making it 18 of 19 next month. Download the RateWatch |