Rates on long-term U.S. paper have remained stubbornly buoyant since topping in mid-May and now appear to be gathering strength for a leap to new multiyear highs. If so, the 30-Year Bond could hit 3.745%, with 3.319% possible on the Ten-Year Note. A move to those levels would add considerable drag to the U.S. economy, sapping energy from a housing market that has already turned down and from an auto sector that is threatened by a 25% tariff on imports. The stock market has shrugged off such worries in recent months, but there are reasons to doubt Wall Street’s bravado will continue if long-term rates are about to move significantly higher.
Rise in Long-Term Rates Could End the Revelry
- July 26, 2018, 8:11 am
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July 26, 2018, 12:17 am
It would really screw the Municipal Bond market, but the Federal Government could always make all their paper tax free from Federal income tax. It is already exempt from State income tax. That is something to consider! I will let someone else figure out what interest rates tax free Federal paper would fetch. There are still trillions sitting in low paying bank deposits. My, come to think of it, that might really screw the banks too! Oh well, all in a days work for the Fed!
NFLX daily and weekly has created a 1st ‘slingshot’ of the main trend in force.
The recent low of ‘380.00’ on 07022018 (the equilibrium level) was over come in time and price of the last 7 day rally to an all time high point of 419.77. The recent low of 344.00 in 4 trading days (needed 340.23 level +/-) from the extreme high completed the slingshot change of trend. This changes the long trend in this issue and lower prices are to be observe.
Several indexes are in position towards the equity side to do the same over the days and weeks ahead.
As, well as the interest market recent bond contract of its falling prices of the last 14 trading days.
Have a great day Rick.