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Friday
Apr142006

US Bonds Cross 5% yield

The benchmark ten-year treasury bond crossed above the 5% yield for thefirst time in years.  I am just going to let my short bondposition run here. I don't see any upside to bond prices (lower yields)until the Fed gives a signal that it might be done raising short term rates.  

However, these big figure changes in benchmark yields do usually bringout retail trading so I do think we'll see some suport for the next twoweeks.  I wouldn't expect yields to go much above 5.2% until someof that technical buying is done.

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