Tuesday, March 10, 2015

Interest Rates Fall Sharply on Fears the Fed May Soon Raise Interest Rates

March 10, 2015
US stocks fall sharply on fears the Fed may soon raise rates

The prospect of the Fed raising interest rates for the first time in nine years is unnerving investors.

In fact, the prospect of higher interest rates unnerved investors so much today that they piled into long-term bonds, sending today's long-term yields down as a sign of complete confidence in rising interest rate theories. That's right, long-term bonds had a very good day as stocks sold off. I kid you not.

So what does this mean? My headline is every bit as accurate as this one's.

Forehead. Desk. Whack. Whack. Whack.
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2 comments:

  1. AnonymousMarch 12, 2015 at 8:20 AM

    At this point, does action lead to an equal and
    opposite reaction ?
    Sporkfed

    ReplyDelete
  2. Stagflationary MarkMarch 12, 2015 at 4:34 PM

    Sporkfed,

    It would seem that Occam's Razor keeps popping the long-term rising interest rate theory bubble.

    ReplyDelete