Friday, March 18, 2011

A Quick One

Since the beginning of February the yield (interest rate) if the 10-year U.S. treasury note has fallen from about 3.73% to approximately 3.25%. The markets are more fearful that higher oil prices will quash the nascent recovery more than they fear higher prices throughout the economy. The correlation between higher oil prices and lower 10-year yields is very close.

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