Bonds Fall Again

The 10-year Treasury bond is getting slammed today. The yield is now up to 4.382%. That’s nearly 50 basis points higher than it was in June. The yield curve has been squished. The 10-year is up more today than the 30-year, and the 5-year is up more than both.

The futures market has little doubt that the Federal Reserve will raise rates by 0.25% at next week’s meeting, and again at the September 20 meeting. That will bring the fed funds rate up to 3.75%. There’s also an 88% chance that the Fed will raise interest rates up to 4% by November 1.

Posted by on August 5th, 2005 at 10:24 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.