Wednesday, June 13, 2007
5.31%? Bring it!
That seems to be what is happening today despite what seemed like a genuine sense of "uh-oh" yesterday and in today's European session.
So I guess 5.31% was a head fake as I see the ten year at 5.21% now. I would not be too quick to think that this episode is over. The almost vertical slope of the ten year cried out for some sort of move like today, a move that could last a little longer.
My hunch is that a couple of months from now the curve will be flat but we could be in for a wild ride in between here and there.