« Forbes 2000 Best, Fri., April 1, 2005, 5:42 AM | Main | What is CNBC Fair Value? Fri., April 1, 2005, 7:07 AM »

April 1, 2005

Strong Bonds, Fri., April 1, 2005, 6:17 AM

Despite a Goldman Sachs warning yesterday that crude oil prices are going to remain higher than expected at $50 average price for the next 52-weeks, and may even reach a cycle top price of $105 ("super-spike"), there was surprising strength in yesterday's bond market.

This move could be an attempt to trap the "hot money" shorts who would then have to take some losses should the U.S. Jobs Report come out with worse than expected numbers at 8:30am today, which would send bond prices even higher. Longer-term investors, however, realize that the Fed is tightening for a reason and that yields should continue to rise in that scenario, which pushes bond prices down.

Posted by Posted by Bill Cara on April 1, 2005 06:17:23 AM | Category: Bonds