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October 23, 2007


Seeking Safety in Short-term Securities

SIV Shock, Inflation Make U.S. Treasuries Unbeatable

“Two-year notes returned 7.9 percent in 2001, including reinvested interest, the most since 1995. Ten-year Treasuries handed investors 4.3 percent that year.”

I couldn’t find a yield chart for the two-year note to save my life (anyone know the symbol?), but here’s a chart of the five-year yield. Check out that slide from the high on June 13th at 5.241% to the September 10th low at 3.955%. That’s some serious “fright” to quality. Elliott Wave fans will recognize the “textbook” A-B-C retracement during September/October. Bond traders should be thriving on this volatility.


Click to enlarge (Daily chart, Five-Year Note Yield)

This entry was posted on Tuesday, October 23rd, 2007 at 10:46 am (utc+8) and is filed under Trading and Investing.

5 Responses to “Seeking Safety in Short-term Securities”

  1. Jagwar said:
    October 23rd, 2007 at 11:10 am

    You using Bloomberg? Isn’t the ticker for generic 2-year treasury GT2 Govt?

  2. Jagwar said:
    October 23rd, 2007 at 11:25 am

    SHY is the iShares 1-3 year Treasury bond ETF. Closest I could find for a way to play the falling 2-year yield

  3. C. Maoxian said:
    October 23rd, 2007 at 11:27 am

    Jagwar: Yes, thanks, that’s the one. Strange that there’s no Index for the two-year like the five-year (FVX), ten-year (TNX), and thirty-year (TYX).

  4. stan said:
    October 24th, 2007 at 3:16 am

    CBOT: TU07Z “tu” year… :)

  5. C. Maoxian said:
    October 27th, 2007 at 3:24 pm

    stan: Thanks for the price chart ticker … I always look at yield charts for the bonds for some reason — been raised on yield, not price I guess.

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