February Friday Fun - As markets head into month end, Treasuries have been somewhat tame today. Granted the fun really occurred yesterday post the 7 year auction, but if anyone in the investment world was not aware of where yields were, they are now. The 10-year move from 1% at the end of January to 1.46% today has put the easy new ATHs by stocks on alert, and now investors are calibrating their positions. Tech has been a benefactor to the low rate environment, but it is harder to justify mega-tech levels as UST’s push higher. As the Fed Heads have been saying, yields are still historically low, so what does that mean for the growth names? Today however, the re-pricing of assets has halted, giving some respite (depending on your positions). USTs are slightly lower, the Dollar a little higher, Commodities seeing some profit taking, and growthy tech seeing some sponsorship. Whether this is just a short term stall from what markets have seen the last two weeks or a longer trend, remains the question.
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