The PIIGS Are Lining Up Big Bond Auctions - Greece Was Just The Beginning!
Yesterday, the market posted strong early gains and it made a new 18-month high. The momentum is strong and it looked like we might have a runaway market. However, as I mentioned in yesterday's comments, we still had to get through the bond auction. The U.S. Treasury auctioned $32 billion in seven-year notes. The bid to cover was 2.6 and yields went up. Some would argue that this is a great sign. Higher interest rates mean that the economy is recovering. Corporate profits and tax revenues would rebound in that scenario. However, this is contrary to what the Fed Chairman said …
March 26, 2010
• Posted in: Options
The PIIGS Are Lining Up Big Bond Auctions - Greece Was Just The Beginning!
Yesterday, the market posted strong early gains and it made a new 18-month high. The momentum is strong and it looked like we might have a runaway market. However, as I mentioned in yesterday's comments, we still had to get through the bond auction. The U.S. Treasury auctioned $32 billion in seven-year notes. The bid to cover was 2.6 and yields went up. Some would argue that this is a great sign. Higher interest rates mean that the economy is recovering. Corporate profits and tax revenues would rebound in that scenario. However, this is contrary to what the Fed Chairman said …
March 26, 2010
• Posted in: Options
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