Slaughter In The Bond Market
The Daily Reckoning
December 8-9, 2001
By Addison Wiggin
MARKET REVIEW: Slaughter In The Bond Market
For the first time in months, wondering what the Fed will do at their next meeting. is actually interesting. Why?
Well, according to Lance “Crash” Lewis, over at the Prudent Bear booth, “The last 3 or 4 weeks have been absolute killers in the bond market. Bond managers have given back their entire year in a matter of a few weeks.” Friday, saw new lows in the 5-yr, 10-yr, and 30-yr notes. And the yield on the 10-yr soared to 5.14%.
Lewis: “All the confetti Uncle Al is printing up in order to levitate the stock market is killing the bond market (along with a whole host of other factors), and he can’t turn around and try and bail out the bond market without killing stocks. Meanwhile, the economy is still showing very little (if any) signs of a recovery.”
It’s no foregone conclusion that we’ll see lucky rate cut number 11. Nonetheless, Easy Al and Co. will meet on to decide which buttons to push…which levers to pull… and what spin to send consumers into the Holiday buying season with.
Alas, even the Fed, we suspect, gets what they deserve …and not what they expect.
Enjoy your weekend,
The Daily Reckoning
THIS WEEK in THE DAILY RECKONING
by Bill Bonner
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12/06/01 FIRES OF ENTHUSIASM
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Guest Essay by John Mauldin
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