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10 Year Bond Yields Jump

Posted by inthemoneystocks on March 1st, 2011

The 10 year T-bond yield is surging higher this morning by 7.0 basis points to 3.48 percent. This move higher in the yield means that bond prices are declining lower. Traders can see how the iShares Barclays 20+ Yr Treas.Bond ETF(NYSE:TLT) is selling off by 0.77 cents to $91.63 a share. The iShares Lehman 7-10 Yr Treas. Bond ETF(NYSE:IEF) is trading lower by 0.57 cents to $92.79 a share.

December Treasury Bonds spiked to the upside after the Conference Board reported a bigger-than-expected slide in consumer confidence. The S&P/Case Shiller home index also showed weakness.

September Treasury Bonds surged to the upside once again as traders flocked to the safety of the lower yielding Treasury market. In addition, the weak U.S. economic data means the Fed is likely to keep interest rates down for a prolonged period of time.

Falling Treasury yields are boosting both September Treasury Bonds and Treasury Notes overnight as fear that the global economic recovery could be dead is driving investors to seek shelter in so-called safer assets.

The cover of Barron’s reads: It’s time to raise rates, Ben. Ben Bernanke, the Federal Reserve Chairman, is supposed to be an expert on the Great Depression. He wrote his thesis on the topic. Therefore, right now, if he is making any kind of connection to his research, he has already determined that raising rates is not even on the table.

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