Now, about one hour after release of the March job market data, the 10-year bond rate has fallen by about 5 basis points from yesterday's close (but moved up off the low thus far). As the graph above shows, today's low has breached the prior gap zone. The question for today is whether the rate will CLOSE in or below the gap zone.
The immediate effect of the decline in the 10-year rate is a boost to home builder stocks. Does a housing bubble exist? If so, is it about to pop? Today's interest rate changes could mean an answer of yes to both questions -- but at different times in the future.
No comments:
Post a Comment