The volume was twice as much as it usually is. Right around 11am it appears somebody let go of a lot of shares. Probab;y some hedge fund needing to finance redemptions.
The same thing happened to NCZ,another Allianze fund. But yesterday it went up over 2% after the shorts got through with all their games.
Seems as though every time the FED wants to raise rates something happens in the world to prevent it.....Ukraine gets invade,ebola and now the Greek crisis.
It's all good!
The safety trade is on again. Forget about the FED raising rates in this crazy environment.
The 10 yr note is completely market driven. It's rise lately has been due to several factors the FED doesn't control. So,where are you coming from?
Because Ben was a man and Yellen is a woman who the hawks think they can push around. These rate hikes will just have to be reversed when the economy slows and housing implodes from "high"mortgage rates. More calls from Congress to audit the FED when Yellen ruins the economy.
It won't be one and done.
The FED has said that their target rate for FED funds is 2.5% by 2017. That means the 10 year will be around 5%. Mortgages will be at 7% by then. There goes the housing recovery. Nobody will be buying houses at that rate and we will be back in the same boat we were in in 2008.
It certainly will happen if they raise rates. But...we will not have any inflation. Of course,people won't have any money to spend because they will be unemployed. It's all good. Right Janet?
I suppose one could say that even when the share price is zero.
There does seem to be some assault on Pimco/Allianz funds by the bond vigilantes ever since it was revealed that they do cross selling.
A 10yr at 2.5% is ridiculous with slow growth and no inflation. Yet,I hear no one at the FED addressing this meteoric rise in rates. The hawks were all out there squawking to raise rates when they were low but are no where to be seen now. Guess they got their wish.
What will the FED say when these relatively high mortgage rates squash the housing recovery and the dollar goes out of sight?
Maybe the FED has a death wish for the economy?
What have equities given you this year so far? NOTHING! CYS pays 12.9%.
Seems like a no brainer where you want to have SOME of your money.
I don't think the FED will raise rates at all this year. They don't want to be blamed for a stock decline. And then there is an election next year too.
All this worry we are going thru right now with the goofy stock market is way overdone.