Yields on the Ten-Year Treasury Note pierced a crucial resistance at 2.57% Wednesday, setting them on a possible course to as high as 3.11% in the months ahead. If so, the U.S. economic recovery, such as it is, will be operating under a new set of rules and bucking serious headwinds. Those winds would become even more daunting as higher long-term rates back up into the short end of the yield curve. The effect is unlikely to be felt any time soon, but it is something to consider if you’ve been banking on Dow 30,000. The U.S. economy has become wholly dependent on easy credit, and so a turn of the screw that marginally increases the throw-weight of the Fed’s perfunctory, now-and-again 25-basis-point rate hikes could conceivably prove fatal.
Ten-Year Note Exceeds a Crucial Threshold
- January 11, 2018, 6:47 am
Market calls from very large investors are always problematic. This one way out in the open may be the end of an era for the person himself.
The new FED chair most concerning observation is the wide ‘spread’ in his own ‘net worth’ signaling a major red flag.
The changes again are in place and it may be a very silent FED by way of the leaders own quiet ways caring more about the FED’s dress code than propaganda.
The very wealthy are at odds, this is not a good thing, the New York City meeting early in the year with billionaires and about depopulation is a major concern more so than the movement in interest rates.
Have a great day today Rick!