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HomeWhat Market Forces Are Driving Long Rates Higher?
Posted by Larry Doyle on June 24th, 2013 8:05 AM |
With global markets currently palpitating in a fashion all too similar to those living on the Bowery and beginning a withdrawal program, I think it is overly simplistic to say that Bernanke’s remarks alone are forcing ‘everybody out of the pool.’
What are the underlying forces at work in causing such a sharp move higher in long term rates the last 7 weeks?
While the rate on the 2 yr Treasury has moved higher by a not insignificant .2% during this time frame, the 10 year rate has moved higher by close to a full percentage point. Let’s navigate . . . but before addressing the forces at work, how about a cautionary comment as a preface. (more…)
