Bonds Hitting Key Technical

The 10 year T is bumping up against 1.80%, a key technical level not seen since early June. Will it “break through” to 2.00% (as predicted by many analysts as this year’s close)? Today’s economic news (rising single family home sales, narrowing trade deficit, wholesale/retail inventories) were unexpectedly positive, pointing towards a likely rate increase by the Fed in December. A drop in oil prices tempered the rise in bond yields; the 10 year closed at 1.795%. Ultra Long Bonds Update: Italy issued a 50 year bond last month, taking advantage of “ultra low” borrowing rates for the long term. Austria today issued a 70 year bond! The longest US Treasury remains at 30 years – for now…Stay tuned.     David R. Pascale, Jr.