Trends

April 16 (Bloomberg) -- Treasuries gained, pushing 2- and 10-year yields down the most in 11 months, as U.S. inflation cooled, speculation rose that Europe’s debt crisis is worsening and stocks and commodities dropped on a loss of risk appetite.

The corporate bond market (high and low grade) seems fairly stable. Stocks have been pausing since February.

Copper is showing little change since the beginning of the year. Lumber is plunging, reflecting a still weak housing sector. CRB and oil are in a rising trend. Agriculturals have been weak since February.

Bottom line. Imteresting trends. Nothing dramatic has changed. I find interesting the strength of the bond market in the face of firm commodity prices. It may suggest the bearish economists may be right about the slowdown in the economy.

But then, how could they explain the rising trend of the stock market and of commodities with industrial production up a strong 5+% y/y?

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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