Friday, December 9, 2016

US Treasury Rally

While it might not be new news to anyone at this point I thought it was worth mentioning the huge tear Treasuries have been on.

Since July, 3 Month Treasury yields have risen an astounding 96.15%! The 2 year, 10 year, and 30 year are showing respective gains too.

2 year: +45.45%

10 year: +42.86%

30 year: +25.0%

It shouldn't be a surprise to see shorter maturities showing larger gains with the expectations for a rate hike all year.  I'd expect that outperformance to continue for awhile.  At this point though I wouldn't be surprised to see yields come back a bit after we get the official announcement from the Fed.

As they say "Buy the rumor, Sell the news"

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