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Commentary Topic from greenfaucet

Interest Rates Continue Climb (TBT)

Treasury bond yields continue to move higher. The 3o year rates now stands at 4.75% at the high for June 2009 and August 2008. The creep higher is in anticipation of the Fed raising the overnight Fed funds rate later this year. The move last night in the discount rate was the first in a long series of actions to be taken by the Fed to unwind the stimulus to keep banks liquid and healing from the crisis. Taking it back will be a delicate process, but rates will move higher in time.