YIELD CURVE FLATTENS

Eduardo asks

will rate go up?

Rates ARE going up, but it all depends on the time frame you look. The monthly trend intact for almost 30 years is falling rates.

Currently, there are NOT TOO MANY BOND BULLS to be found, some polls in single digits....that usually gets corrected.

Rates are above a rising 200 DMA which is bullish for higher yields.

If stocks ever do sell off rates usually fall as safe haven......but HOW SAFE are bonds at current levels?

LOOK atthe MOVE on the 2 year bond! in 3 months from.33% to .84% !! that's huge....andmay be warning of inflation even as BLS GVT data may suggest otherwise or what Bernanke may say.....

D