Bond Market Speaks, Stocks Listen: JPM, BAC, C, WFC, TBT, TLT
December 31, 2009 at 14:59 PM EST
How long can the Fed funds rate stay at zero percent? This is the overnight lending rate from the Federal Reserve Bank to the large banks such as J.P. Morgan Chase (NYSE:JPM), and other giant institutions. In June of 2009 the 10 year Treasury yield reached a high of 4.00% and this was really the only pullback in the stock market since the March 2009 bottom. Obviously the higher yield hurts the mortgage market. The key 10 year bond yield is now creeping back up toward that level again. Today the yield traded as high as 3.92% intraday. The Proshares…
