🎯 Trump Tariffs Hit Markets: Here's What Smart Investors Should ConsiderRead now

T-Bill Rate Rising Strongly

Published 01/07/2018, 02:07 AM

Greece Vs US2Y Yields

Credit Markets

Snippet from January 4, Pivotal Events

As widely reviewed, the Treasury yield curve has been flattening, which is positive for the general stock market.

Within this, the T-Bill rate has been rising strongly. Yesterday, a former Fed official stated that he was concerned about rising short rates. History records that so long as such rates are going up the boom is on.

When the T-Bill rate turns down it will provide a warning on the longevity of the party.

In 2007, the 3-Month turned down in April, and really declined in late-July. The S&P peaked in that fateful October. During that summer, the establishment claimed that nothing could go wrong – because the Fed would cut the administered rate – of course with perfect timing. As we emphasized then, short-dated market rates of interest go up in a boom and down in the contraction.

Credit spreads have narrowed a little lately which is also a plus for the stock markets.

The last rally we called for in the long bond (iShares 20+ Year Treasury Bond (NASDAQ:TLT)) was to the 128 level and it made it to 128.31. That was in the middle of December and the decline has been to 123.69. Now at 127, it can trade sideways for a number of weeks. Getting below the 50-Day ma at 125.40 would turn the action down.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Which stock should you buy in your very next trade?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.

In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.

With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Unlock ProPicks AI

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.