Expert opinion

The Fed Does It Again

As the Fed continues with its announced policy of raising rates, it will be easier to find good buys in the secondary market as earlier issues will have lower prices in order to reflect the higher interest rates of new issues.

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The Flattening Yield Curve

Various market observers have remarked that the yield curve is flattening. That means that the spread, that is, the difference, between the yield of short-term Treasuries (US government bonds) is decreasing in relation to the yield of long-term Treasuries. The two-year bond, which is to be considered short-term, is currently at about 1.75% ($UST2Y 1.75) and should be compared with the five-year yield ($UST5Y), which is at 2.07%, and the ten-year yield ($UST10Y) at 2.43%.

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