Two Ways: China Sweats US Treasuries
Strengthen your portfolio in good times and bad.
When asked about the Premier 's remarks, Lawrence Summers, White House National Economic Council Director, said Treasuries would be hurt without the steps being taken by the administration to protect the US economy. China is more or less funding the recently signed $787 billion stimulus package.
Treasuries initially fell after the comments, but did recoup their losses later in the day. Yields on the benchmark 10-year Treasury Note rose to 2.96% from 2.85% yesterday. Yields were around 2.83% at midday.
For context, see Toddo's Wishbone World.
From the Bull Pen: With all the currency battles taking place, bulls can simply look to the Gold ETF (GLD); a sell stop in the near term can be set below $90.
From the Bear Cave: If China were to begin selling its massive inventory of US Treasury Bonds, one could expect the Ultrashort 20+ Year T-Bond ETF (TBT) to benefit. But don't expect the Fed to sit idly by, so careful when playing this leveraged ETF.
Faceplant! It's been an exhausting week, but I hope a good one. Have a great weekend!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter