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U S Bonds Continue To Soar As I R Rise

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The Associated Press

Thursday, April 13, 2006 12:52 p.m. ET

NEW YORK (AP) -- Bond prices dropped Thursday, in a move that saw the 10-year Treasury yield rise above 5 percent for the first time since June 2002.
Treasury prices, which move inversely to yields, have fallen heavily since early March, as Fed policy-makers signaled they were not done with their interest rate-tightening cycle, and as U.S. and global growth have remained strong.
In addition, policy tightening in Japan and the euro zone seems to have persuaded some foreign investors to move assets away from longer-term Treasuries, pushing prices lower and yields higher. That has helped the yield curve steepen again.

Trouble ahead for Gordon's policy of low rates to boost HPI/MEW.


The fed funds futures market is pricing in Thursday a slightly higher probability of further rate hikes after the yield on the benchmark 10-year Treasury note spiked to four-year highs above 5%.
The May futures contract was now pricing in an 80% chance of a 0.25 percentage point increase in rates after the Federal Reserve's next policy setting meeting, vs. a 78% chance on Wednesday. The market is now pricing in a 58% chance that the Fed might hike its target from an expected 5% fed funds rate to 5.25% after its meeting in late June, vs. a 52% chance on Wednesday. The 10-year Treasury yield was last up 0.039 percentage points to 5.015%. It reached a high of 5.036% earlier in the session, the highest yield seen since June 2002.
Edited by Realistbear

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Guest Winners and Losers

Don't be silly our IR's will only come down and House prices only go up - ask the "Guru" TTRTR :lol:

Alternatively, just ask anyone in the UK. :rolleyes:

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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