Rising Rates – 10 Year Approaching 4%
One of the important stories last week was the notable rise in interest rates. The cause was weak treasury auctions on Wednesday and Thursday when the Treasury sold $42 billion of 5 year notes and $32 billion of 7 year notes, respectively. The Wall Street Journal wrote a front page article on this on Friday: “Debt Fears Send Rates Up”, The Wall Street Journal, March 26, A1.
Disclosure: Top Gun is short long term treasuries via the ProShares UltraShort Long Term Treasury ETF (TBT).