Bill Cara: U.S. bond market drubbing, Mon., May 1, 2006, 3:18 PM

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May 1, 2006

U.S. bond market drubbing, Mon., May 1, 2006, 3:18 PM

Did you take note of my comment on U.S. bonds in this weekend's Week In Review? Ka-ching!

Here is what I wrote:

Bonds: Bonds were down this week but recovered a bit Thurs-Fri with help from the Fed; watch AGG and IEF on Monday to see if it continues to come back. I doubt it because I see last week as more Fed talk than specific action that would boost bonds long-term. And to those who say that there was a lot of positive economic news this week, my point is simply that bonds didn't move up until the Bernanke dog & pony show started.

This interactive chart is a good one to show the plunge in bond prices.

And didn't I tell you about the high close on these bonds on Friday afternoon? This is the nonsense that the market does to fool you (or try to fool you).

Posted by Posted by Bill Cara on May 1, 2006 03:18:30 PM | Category: Bonds

Discourse

Today was the first day I had CNBC on during the day.

quote of the day by Maria,"Bernanke said the market got it wrong,.... There seems to be something going on behind us"

Classic

Posted by: Andy at May 1, 2006 3:34 PM [link]

Andy,

Moskow discussing his comments from last week. Bottom line, the game of chicken between the fed and the commodity market continues to force the fed to hike while the regional members blabber on about the sustainable economy. Housing absolutely coming unglued in the US so a hard landing looks to be a lock. Kasriel at Northern Trust one of the few to get it right.

Bill L

Posted by: bill at May 1, 2006 4:02 PM [link]

Bill L-

Markets sure climbing the "Wall of Worry" for 3/4 of the day. Oil at 72 and change. Gold off the charts. Metals up YOY 30, 40, 50%. Rates climbing. $USD getting trashed. What idiocy. Let's get this correction behind us.

Posted by: MarkM at May 1, 2006 4:11 PM [link]