Treasury auctions today ended with interest rates moving somewhat higher. Treasury prices were lower as a result. Despite the auction results and higher rates, the downtrend today looks weak to me. There's not much conviction, at least not yet. I wouldn't be surprised if the market discounts inflation and buys treasuries again over the next few days, unless commodities begin to rise and/or the Dollar collapses again. Like Fox "I Want to Believe" Mulder of the "X Files" television series, the market "wants to believe" in lower rates, regardless of inflationary pressures.Tuesday, August 19, 2008
Higher Interest Rates Courtesy of Inflation
Treasury auctions today ended with interest rates moving somewhat higher. Treasury prices were lower as a result. Despite the auction results and higher rates, the downtrend today looks weak to me. There's not much conviction, at least not yet. I wouldn't be surprised if the market discounts inflation and buys treasuries again over the next few days, unless commodities begin to rise and/or the Dollar collapses again. Like Fox "I Want to Believe" Mulder of the "X Files" television series, the market "wants to believe" in lower rates, regardless of inflationary pressures.
