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Market Facts — September 18, 1998

The “Current” Bond to the “Old” Bond Spread The spread between the “current” bond and the “old” 30-year Treasury bond has widened to the highest levels in almost three years. Most believe this represents a lack of liquidity. We do not. We believe it represents a sign of intense speculation by non-traditional Treasury buyers. This… Continue reading Untitled

Open The “Current” Bond to the “Old” Bond Spread
The spread between the “current” bond and the “old” 30-year Treasury bond has widened to the highest levels in almost three years. Most believe this represents a lack of liquidity. We do not. We believe it represents a sign of intense speculation by non-traditional Treasury buyers. This usually occurs as a market is approaching a low.