“The price of light is less than the cost of darkness.”
A brief review of recent 10-year treasury yield levels from January of 2016 to the present –
10-year treasury yields hovered around 2.0% for the entire month.
February to early November
10-year treasury yields spent this 9-month period under 2.0%. In early July the 10-year hit a low of 1.37%.
November 8th – Election Day
10-year treasury closed that day at a…
This was the Bond Buyer’s headline story on Feb.28, as reported by Aaron Weitzman. My initial reaction was “Wow, that’s a surprise” but then I figured I’d look into it a little further to see if, in fact, there’s anything to be worried about.
First, there was a $10 billion dollar drop in refundings when compared to last year,…
Capital Markets have a strong aversion toward the unknown. Markets prefer the known even if it is disagreeable. The knee jerk response throughout the equity futures markets during the election broadcast corroborates this hypothesis. Markets closed on Election Day believing the political status quo would continue. As this became more and more unlikely they reacted with some panicked selling…