« Semis Coming to Life? | Main | Nasdaq Underperforming the NY Composite »
April 27, 2006
Five Year Note Yield Exceeds 5%
What is holding stock bulls back? Two things mainly: rising interest rates and high oil prices. The 5-year Note Yield ($FVX) moved above 5% yesterday. The one and done crowd grabbed the spotlight last week, but this pullback proven quite minor (gray oval). The Fed follows the bond market and I would not start anticipating a change in Fed policy until the 5-year Note Yield starts to fall. Right now FVX points to further rate hikes and higher interest costs with an upside target around 5.5%.
Posted by Arthur B. Hill at April 27, 2006 12:06 PM