How good is your crystal ball on interest rates?

June 27, 2013 10:22 by Bill Conway in Economy  //  Tags:   //   Comments (0)

The following is a post from Dallas Wells of Asset Management Group, Inc., a subsidiary of Country Club Bank.

I will admit, my own crystal ball was a little hazy on this one. We are in a very unique situation with interest rates, as the level of central bank intervention across the globe has seriously distorted markets. The short end of the yield curve is always Fed driven, but with the QE programs, the Fed has been attempting to also control the long end of the curve. I think what the last few weeks have shown us is that while the short end of the curve may remain anchored near 0%, the long end could turn quite volatile on us. The mere whiff of change in Fed strategy wreaked havoc in the bond markets, and has moved the 10-year 100 basis points.

So, raise your hand if you saw this coming?

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