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Posts by "cumbucotrader"
2 Posts by member
CumbucoTrader
(Fortaleza, Brazil)
EURUSD 1.1851 |
USDJPY 111.52 |
GBPUSD 1.3772 |
AUDUSD 0.7485 |
USDCAD 1.2406 |
GBPJPY 153.59 |
EURJPY 132.15 |
AUDJPY 83.48 |
CADJPY 89.86 |
Silver 26.23 |
http://www.econbrowser.com/archives/2010/03/interest_rates.html
"Yields are now near the highest levels we've seen since the Lehman failure in September 2008, and if they continue to move up at their recent pace I wouldn't want to dismiss it as an irrelevant development."
Some great insights in the comments section as well, including speculation regarding rising yields along with rising equities.
"What equity investors will not like is a "100yr flood" in the yield curve steepness. That is, if rates rise quickly while ZIRP is still in effect -- creating a 300bp+ 2/10yr spread -- then the market will be "surprised" by a negative development. Rate-sensitive sectors of the economy may be so negatively affected as to jeopardize the overall recovery. This is a recipe for a steep equity market correction."
Ashraf, I'm interested in any comments you might have...