Rates on the 10-year note continued surging at mid-day, breaking above the 3.45% level after testing the 3.15% level yesterday. The 10% rate move certainly feels like a panic setting in as the world is beginning to realize that credit ratings also apply to the US government. It should come as no surprise to anyone that rates would rise dramatically. Now that the banks have gotten tons and tons of dollars virtually for free, now they can begin to rape and pillage consumers, jacking up interest rates even more.
Stocks are rebounding today after being down close to 2% yesterday.
Be sure to check out this weekend's report. I expect next week to be a very important week as we move into the end of the month.