Monday, May 16, 2005

The devil is in the details

Bill Cara: Inflation data due
f you are holding a 10-year T-Note from Uncle Sam that is yielding a nice 4.11 pct as it is today, you are going to be furious if and when other traders can buy that exact same 10-year security in a year with a yield of say 6.11 pct. That’s because they will be paying a small fraction to own tomorrow what you own today.