From the economic viewpoint, Treasury yields are too low. We are expecting robust growth in the first quarter and that will lead to a correction in the bond market.
The 30-year bond sales will take the pressure off 10-year notes when it comes to pension fund managers seeking longer duration holdings for their funds. We will see 10-year yields rise again.
We don't see the Fed stopping before the second half of 2006. We are recommending investors sell Treasuries before yields move even higher.
With the Fed expected to raise rates one or two more times and the economy doing well, we cannot recommend buying Treasuries. We would place short positions.
The data show the economy has more legs than people expected. Growth can last for at least two more years.
We are expecting the Treasury market to continue to weaken in the next few months. There are no signs the economy is slowing and that means the Fed can continue hiking rates. This is not the time to be buying bonds.
There's no sign of the economy slowing down and Fed officials should continue to be hawkish. It's a misconception that long-term yields will fall further.
The housing market only has a smaller impact to any slowdown in the economy.
The economy is doing well and with more rate hikes anticipated, we don't see good demand at the auctions. We remain bearish on Treasuries.
The curve inversion is just a temporary phenomenon. It cannot last as the Fed raises rates.
