"The bond market was wrong about recession and Fed rate cuts. Why should we believe they'll be right about rate hikes and inflation?," Aaron Task muses on Wednesday's
"The Real Story" podcast.
Task discusses the issue with TheStreet.com market columnist Liz Rappaport, who notes that many traders are moving out of stocks and into the relative safety of Treasuries as yields rise toward 5%.
The irony, Task says, is that as Treasury yields rise toward 5%, buying by asset allocators attracted to the "relative value" of fixed-income keeps a lid on yields, which move in opposition to price. Notably, Treasury yields fell Wednesday, even as many commentators attributed the stock market's decline to "fear of higher rates."
Task's second guest Wednesday is David Peltier; this week's "Should You Buy It?" segment features insights on
In the remainder of the podcast, Task discusses the day's corporate news, including:
The FTC's decision to block the merger between Whole Foods ( WFMI) and Wild Oats ( OATS), which Goldman Sachs says makes a merger between Borders ( BGP) and Barnes & Noble less likely;
Speculation about TD Ameritrade possibly merging with E-Trade Financial or Charles Schwab ;
Weakness in rail stocks after Norfolk Southern talked about declining freight volumes; chip stocks amid concerns about a delay in AMD's newest processor; and refining stocks such as Valero and Tesoro amid higher-than-expected gasoline inventories.
here to listen to the entire podcast.