While we of course have our own opinions and axes to grind, and gleefully grind them away here at the blog, we still publish a wide variety of viewpoints at Market Talk, the version that goes out on Dow Jones Newswires (subscription required for that link there.) The idea is to give our readers an idea of what’s being discussed out there, and we do just that, hitting as many angles on the issues of the day as we can reasonably and responsibly gather.
Why, just today we published this snippet that Steve wrote up, citing Todd Harrison over at Minyanville on the subject of rising interest rates:
Interest rates jumping to three-month highs “smack dab in the face of QE2″ suggest bond investors are merely selling the news or anticipated the Fed would flood the economy with even more than the $600B announced bond purchase plan, Todd Harrison writes at Minyanville. “Prepare yourself. There will be a large contingent of bulls coming out of the woodwork to opine that higher rates are a healthy and natural bi-product of a recovery,” he says. “That’s true; the question, of course, is how ‘healthy’ and ‘natural’ this recovery is given the steady stream of synthetic sweeteners being administered by the government.”
How prescient Harrison was, or is, since not two hours later, we published this snippet, written up by our Treasurys reporter Min Zeng, citing Morgan Stanley on the subject of rising interest rates:
Morgan Stanley is casting a positive light on the recent sharp rise in Treasury yields. In a research note Tuesday, market strategists at the firm says the sharp rise is due entirely to real rates as inflation expectations have declined. Add to that the US dollar rally, and the market may be expecting stronger real economic growth, a view shared by Morgan’s economists, they say. “This may also indicate that growth has taken over from QE as the main market driver,” they say. “In our view, this upside risk is enough to balance out the increased downside risks elsewhere,” namely euro zone debt problems and China tightening monetary policy.