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January 19, 2012

2012 Predictions: Bond Markets

The bond markets ended 2011 with exceptionally low rates mainly due to the European debt crisis and the Federal Reserve's interventionist policies. I believe Europe will be the dominate story of the global economy for all of 2012 with little progress and more problems by the end of the year.

With that being said, the only question is whether or not the fiscal crisis will bleed into the U.S. I believe the 10 year Treasury bond will trade between 1.6% and 3.5% throughout the year. The two greatest factors for interest rates in 2011 will be Europe and economic growth in the United States.

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