Thursday, May 7, 2009

Inflation On The Way?

The yield on the 30 year U.S. Treasury bond is soaring portending an inflationary spike is coming. Yields were only 2.55% in January and now are up to 4.15%. Rising rates will have an negative effect on mortgage rates as well as other consumer loans, not what the Fed wants to see. The dollar is rolling over as well. -Lou

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