Monday, February 9, 2009

Bill Gross: Fed to Cap Ten Year Yield

From Calculated Risk:

From CNBC: Mortgage Rates Likely Headed to 4.5%: Pimco's Gross

"I think at some point we're going to see a 4.5 percent mortgage rate and the 10-year Treasury rate capped at some level," he said. "When the Fed comes in to buy Treasurys that will be a big day."
CNBC has a video of the interview with Gross.

Ten Year yield Click on graph for larger image in new window.

The 10-year yield is at 3.04% today, well above the record low of 2.07% set on Dec 18th....MORE