Jump on the Boat with the 10-Year Note?
Yield is the key word these days with long-term investors. Considering all of the uncertainty in the markets, having a steady paycheck every month doesn’t seem like a bad thing to a lot of investors. As a long-term fixed income investor, no matter what the Fed does with interest rates, you still get a check every month. The downside is that the value of your bond may decrease in value due to interest rate risk. That brings us to today’s topic – the 10-year Note.
We are at an interesting technical point with the Note right now. With prices currently testing March levels, a bullish market could be just on the other side of this resistance. Making things even more interesting is the upcoming Fed meeting on September 18th. There is increasing speculation that the Fed will announce a quarter-point cut to 5%, most likely leading to lower yields on Bonds as a whole. So where does that leave the 10-year Note? The next few weeks will tell the tale.
Currently, September 10-year Note futures are trading at 108-220.
