“The Fed has pledged to keep the economy and inflation in check, which they're doing now, which will keep the fed funds rate going higher. Low inflation and global demand for U.S. Treasuries will remain strong in 2006, which will keep long rates low.”
“The enormity of the storm's effect is something that is unprecedented. If you look at towns where basically all the infrastructure was wiped out, then you have to evaluate those based on who's coming back to pay taxes and rebuild.”
“If the 'street' is required to own a large portion of this amount, it likes to have it on their terms, which usually results in higher yields and lower prices.”
“For the first time since August 2001, the Treasury will attempt to ease the pain for pension funds and insurance companies who need long assets to pay for a growing number of baby boomers.”
“While this group is still a few years away from retirement, this plus the fact that Americans are living longer requires these funds to go out further on the yield curve.”
“It is important that he come across in an authoritative way so the markets see him as 'apolitical' and strong. If they sense that he can be maneuvered by Congress, then it could make the markets a bit nervous.”
