In a picayune over a week, we've seen a squeamish rally inwards intermediate-term investment cast corporate bonds (VFICX; pinkish line), also equally intermediate-term investment cast municipal bonds (VWITX; blueish line), equally falling involvement rates bring investors searching for relatively condom yields. During this same period, we've seen dramatic weakness inwards the USA dollar in addition to firmness inwards gold. With Treasuries offering near-zero involvement rates in addition to one-year depository fiscal establishment certificates of deposit currently averaging 2.86%, compared amongst the prior week's 3.22%, the search for yield is gradually taking investors farther out on the conduct chances curve--particularly retirees in addition to infant boomers who involve to supersede the income they had been getting from riskless instruments. As the Fed seems unlikely to unwind its zippo involvement charge per unit of measurement policy (ZIRP) whatsoever fourth dimension soon, I'll hold upwards watching for signs of growing conduct chances appetites inwards credit markets.
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