I saw a headline a few minutes ago saying that Libya’s Qaddafi doesn’t intend to resign. Resign? NATO has been fighting this third world dictator for weeks and they STILL haven’t kicked this guy’s butt yet. I promise that if you gave me one stadium full of European soccer fans and a beer truck I could have ended this Libya thing in three days time.
It seems like lots of things are dragging on lately. The problems in Europe continue to affect the Treasury market week after week. The economic data in the US continue to come in poorly week after week. The Fed continues to hold their position that rates will remain low for “an extended period”. As some of you are aware even my boat has been in the shop week after week…I’m ready for a change.
Six weeks ago the 10-year was trading at a 3.20%, today the 10-year is heading into the end of the week at a 2.94%. This marks the 5th consecutive week that the 10-year has ended the week at a lower level than it began (feel free to use that fact for Friday afternoon office trivia).
Maybe we’ll see some improvement next week. There seems to be some headway in finding a “solution” to the Greek debt crisis. If this happens we should begin see a reversal of the flight to safety trade that has hammered Treasury yields lower over the past weeks and months. This would ease some of the pressure on bank portfolio managers that are trying to get money to work in this environment.
Next week is looking up already…the shop just told me my boat will be ready Monday.
If you have any questions or if there is anything I can be doing for you just let me know.
Steve Scaramastro, SVP
800-311-0707
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