10-year Treasury yield raises to 4% due to sloppy auction

June 10, 2009 by · Leave a Comment
Filed under: Currency News 

It can not be a good sign when fixed income trader called the Treasury auction “sloppy”.  With the 10-year at 4%, we can expect that the longer portion of the “yield curve” is going to steepen.  This does not bode well for future interest rate which will need to go much higher to match future inflation expectations.  With the amount of money that has been pumped into our economy through our banking system and with interests at historic lows, inflation is the obvious policy of the day.

News (Reuters):

U.S. Treasury prices fell on Wednesday, sending benchmark yields to 4.0 percent for the first time in eight months, after an auction of 10-year notes heightened concerns over the burgeoning U.S. budget deficit.

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U.S. commercial mortgage-backed bond yields soar

November 14, 2008 by · Leave a Comment
Filed under: Real Estate News 

No surprise that now we are waking up to the fact that we are facing a serious recession, the commercial real estate market is finally starting to lag, prices are declining and risks on the bonds are rising.  This in turn, means investors are demanding higher returns if they are going to invest in any Commercial Mortgage Back Securities (CMBS).  According to Reuters, some bonds are being quoted at a huge 12% yield.

News:

Yield premiums on bonds backed by office buildings, stores and hotels soared to record highs this week as concerns about economic growth and doused hopes for a federal asset purchase program plagued the market.

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