The RateWatch
 Commentary by Bill Brizendine of Melody Capital MarketsIt was a tough week: new housing sales were down; existing housing sales were down; and, Pluto lost its status as a planet (giving rise to concern about solar system deflation but making it statistically easier for the planets to align). The 10-year Treasury yield fell another 5 bps to close at 4.78%, the lowest since late March. This week has some heavy economic reporting with July job growth and unemployment. Pundits believe that “bad” economic news has already been priced into Treasuries and that barring an unexpected drop in job creation and an uptick in unemployment, there are unlikely to be further gains (i.e., drop in yields). But it wasn’t all bad news last week: in a development apparently of great importance to our local economy, Frank Quattrone wiggled off the hook. Crediting Mr. Quattrone with almost single-handedly creating the tech and internet boom of the 90’s, his admirers pointed out that the struggles in Silicon Valley coincided with his absence. Some were quoted as believing the tech sector will come roaring back to its previous heights should he decide to ply his trade again here in town. We did not follow the case very closely and have no informed opinion regarding Mr. Quattrone’s guilt or innocence on the charges made. However, the hyperbole over his financial and sales acumen as the driving force – the creator even – of the tech and internet revolution seems a little much. Nonetheless, it cannot be disputed that Mr. Quattrone demonstrated great skill in facilitating a transfer of much wealth: from those left holding the paper (and buildings) when the music stopped; to those who got in and out early (and often). Download The RateWatch: A one-page analysis of institutional lending rates |