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Week ended 1st April ,2011 – Treasuries & Bonds this week

When I first listen about the comeback of Sub-Prime & other residential mortgages from my  friend I thought he is making me April Fool but later when I saw the news I was really stunt .  Some people are thinking positive about that , they are saying that it is the sign of improving American economy .
What I think Obama administration is using this for two purposes , One is , they have no other ways to curtail the loss from it . Though it is sure that they are not looking for huge profit from these .  Second is , they are in-turn trying to make some good for US Housing market and the Mortgage situation because they are not improving much . Now if future home buyers and person who wants to take loan for buying new or old houses see some renewed  good atmosphere for these Sub-Prime Mortgage , their confidence will also boost up & they may show some interest  .

First see the Treasury Rates


YIELDs
1st-Apr-2011
3/25/11 - 4/1/11
3/18/11 - 3/25/11
3/11/11 - 3/18/11





2-Year Treasury
0.796
7.85%
24.03%
-7.60%





5-Year Treasury
2.244
4.12%
10.91%
-5.54%





10-Year Treasury
3.445
0.29%
4.94%
-3.76%





30-Year Treasury
4.484
-0.31%
1.76%
-2.83%



In the initial days yields were heading higher but later it stabilize as political situation deteriorates and also through comments of some Fed people .
Treasury yields are getting some resistance in this moment , like 2-year Treasury Yield is getting resistance in 0.85 . Same way 5-Year Treasury Yield is getting the resistance at 2.30 level .
10-year Treasury Yields get some resistance around 3.50 level . During last two weeks Treasury yields saw a big up-move .
30-year Treasury Yield is creating some pattern , though it is hard to say now that whether it is going to complete that pattern or moves in the other direction . It is getting some resistance at 4.55 .

Not only in respect of stock market , Emerging market  Bond Fund is also ahead of world bond fund , while Emerging Market Fund gained 1.7% , the World Bond Fund roses 1.3%  this year . Japan’s  Government bond fell this week  because investors are looking for higher coupon at an auction which is going to happen in 5th April to sell $26.3 billion 10-year bond .

Portuguese 2-year Bond sees highest yield at 8.6% this year , as it rises nearly 3% in last 2 week . Portuguese Government said that they are missing their 2010 budget deficit target . Inflation in Portugal in at 3.5% where  Euro Area inflation roses to 2.6% . This is putting pressure on increasing interest rate  & this in-turn causing rises in Portugal’s borrowing costs .

Inflation is disturbing more or less every country now and beside the stock market and political tension it is going to be the deciding factor for Bond & Treasury movements in coming week .

NOTE :  Please see the disclaimer below this blog .



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