Friday, November 03, 2006

Bam!

On the back of yesterday’s fairly high ULC figure, today’s low unemployment figure has the Treasury market running for cover. The 10-year is down a full point and the 30-year is down 1 and a half.

I can see why this is causing consternation for the bond bulls. With inflation figures still high and unemployment falling, what's the argument for Fed cuts again?