TNX 10 Year Long Term Interest Rates topped in early Dec.2018, near 3.25 %,
when the majority thought the 10 year yield could reach back to 4 % this year.
Bond Trader's saw something dark on the horizon that forced the Fed's hand,
in Jan.2019, with the Fed' change to now "patient" on further rate increase this year.
They had planned two more .25 % rate increases at their Dec.2018 meeting,
and their abrupt change has made market opinion maker's to think that
the administration bullied the Fed into the change.
So at this point ..
If the economy is as strong as the stock market rally in Jan and Feb 2019 seems to believe,
Why are long term interest rates still falling right now...?
The answer is that the bond guru's and traders don't believe the rosy scenario
being painted by the stock market right now.
They see a further slowdown in the economy in 2019, as a distinct possibility.
Bond traders have a market reputation of being much savvy than stock traders,
when it comes to predicting the cost of money, and in turn an economic slow down.
So the question still begs here.
Why is the stock market still rising like it's 1999, or 1987 ?
THE_UNWIND
2/7/19
NEW YORK
when the majority thought the 10 year yield could reach back to 4 % this year.
Bond Trader's saw something dark on the horizon that forced the Fed's hand,
in Jan.2019, with the Fed' change to now "patient" on further rate increase this year.
They had planned two more .25 % rate increases at their Dec.2018 meeting,
and their abrupt change has made market opinion maker's to think that
the administration bullied the Fed into the change.
So at this point ..
If the economy is as strong as the stock market rally in Jan and Feb 2019 seems to believe,
Why are long term interest rates still falling right now...?
The answer is that the bond guru's and traders don't believe the rosy scenario
being painted by the stock market right now.
They see a further slowdown in the economy in 2019, as a distinct possibility.
Bond traders have a market reputation of being much savvy than stock traders,
when it comes to predicting the cost of money, and in turn an economic slow down.
So the question still begs here.
Why is the stock market still rising like it's 1999, or 1987 ?
THE_UNWIND
2/7/19
NEW YORK