Treasury bubble?
The market has bounced strongly and did not visit Dow 7,000 - yet. This may still be a head fake, but it appears for now that the sector rotation is positive. Oil and other commodities will continue their spiral as global recession worries deepen, but another interesting development is underway. This one is rather troublesome too. This is the chart of the 10 year yield. http://stockcharts.com/h-sc/ui?c=$TNX,uu[h,a]daclyyay[pb50!b200!f][vc60][iue12,26,9!lc20 ] You can play around with it and change the time frame. Suffice it to say that the yield is now flirting with historic lows. Why does that matter to you? Well, first of all, the 10 year note is what the 30-year fixed mortgage rates look at. The lower this yield, the lower the rate. Now could be the best time to lock in a new 30-year fixed rate on your house. Or is it? It appears that the US economy has gone from bubble to bubble and typically, like a cop investigating the mafia, you just need to follow the money. So first we went t...