Coprorate vs Treasury Spread

posted by Nima

June 5, 2010 · Posted in Investing 

Since the beginning of April, the price of Treasury Bonds has risen while that of corporate bonds has dropped. The action has, once again, been a good predictor of the recent weakness in equities.

corporate-bonds-vs-treasuries-06-05-2010

As I noted in September last year: Keep an eye on the bond market.

corporate-bonds-vs-treasury
Click on image to enlarge.

The question is where are corporate yields headed and where are Treasury yields headed. So long as the spreads remain flat or continue to narrow, stocks will probably move sideways or spike up a little more.

The time of flattening spreads seems to be over for now … what this means for equities is obvious.

Found this post helpful? Consider supporting the cause of economic education, freedom, peace and happiness. All donations will be used to advertise this blog online to as many people as possible.


… have no money to donate? No problem, there are other ways to promote the cause. Use the “SHARE” link below and share this post with friends and family!




Bookmark and Share

Related posts:

  1. Corporate Bond Yields – Where to From Here?
  2. Treasury Market – The Alarm Bells Are Ringing
  3. Gold Breaking Out – Ready to Reach for New Highs?
  4. 10 Year Treasury Yield Drops by 17 Basis Points on Single Day
  5. Long Term Treasury Securities – Foreign Demand Rises
  6. Treasury Yields at Record Lows
  7. Treasury Yields in Free Fall
  8. Confusion Over Gold and Treasury Yields
  9. Gold, Silver, Treasurys – A Snapshot
  10. Market Meltdown – Deflation Trade is Back

Tags:

Comments

Leave a Reply




 

Subscribe without commenting