The RateWatch
 Commentary by Bill Brizendine of Melody Capital MarketsIn a short week that was supposed to be uneventful, Treasury Bonds resumed their rally and the yield on the 10-year UST fell 5 bps to close at 4.55% on Friday, the lowest week-ending close since late February. Reports on housing and inflation due this week – the former expected to be “soft” and the latter benign - could continue to fuel the rally. The wise men of Wall Street seem to have given up on the Fed for any near term interest rate decrease. The guessing game now seems to revolve around when the Fed will drop the “bias” from its statements accompanying their meetings (the bias being the statement that, “inflation pressures may necessitate further tightening”). So, we can expect interest rates to continue to bounce around, responding to expectations of nuanced statements, unencumbered by action or any objective reality. Download The RateWatch: A one-page analysis of institutional lending rates |