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10-Year Treasury Yields Pushing Near 4%

Monday, February 7, 2011 - 7:40 PM
A strengthening U.S. economy and growing concerns over inflation will likely push the benchmark 10-year Treasury yield back over 4% this year, experts say.

This could also mean higher long-term CD rates.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,600
1. Tuesday, February 8, 2011 - 8:53 AM
Yet the Fed is continuing full-speed with QE2, buying long-term Treasuries as fast as it can, in a futile attempt to drive their yields down. All these cheap dollars and a commodity bubble are going to create a challenging situation for the Fed in a year or two. From a political posture, Bernanke's Fed won't even nudge interest rates up, one iota, in fear of spooking the stock market bubble, which was the ultimate goal of QE2. Obama wants to go into the 2012 election appearing to have brought the economy back, as evidenced by a complete recovery on Wall Street back to, or even exceeding, the record market highs just prior to the crash. What we are going to have is a Potemkin Village economy, built on debt, market bubbles, and Helicopter Ben printing money out of thin air. It won't take long for the bond gurus to figure this out and take appropriate action.
ShorebreakShorebreak2,670 posts since
Apr 6, 2010
Rep Points: 14,473