Yellen To Crush Fixed Rate Bonds In 2 Weeks

Posted by Brett Owens - Contrarian Outlook

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Worried that rising rates are going to hurt some of the bonds you own? A 0.5% – 1% move would be plenty big to pancake many bonds. 

As I write to you on this first Wednesday of December, traders are handicapping a 78% probability that the Fed will boost rates in two weeks. Overall they’re projecting a half-percent increase between now and June. And renowned government insider Goldman Sachs is a bit more aggressive – it’s projecting a full percentage point of tightening. 

So if you’re worried that Goldman Sachs could be right, you’d better move some of your fixed-rate bond money into “floating-rate” issues. 


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