Sunday, April 26, 2009

10 Year Treasury Closes above 3 Percent (Graph)

Ten Year Treasury Daily Yield Chart

10 Year Treasury Interest Rate Chart 424

The ten year Treasury closed at 3.03 on Friday. It looks to me like interest rates are turning up in spite of the FEDs buying of treasuries and mortgage backed securities. This does not bode well for longer dated Treasury securities in the months ahead. Treasury supply is going to rise dramatically and right now there is little demand for the ten year as evidenced by the shape of the yield curve.

I expect the ten year to test the critical 3.125 area soon. If this area is broken the long term downtrend in ten year interest rates will have come to an end.
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