Today Was Another Bad Day For Bond and Housing Bears

Treasury bonds rallied again today to bring the yield on the 10 year note solidly below 4.1%. According to some, the rally in bonds is due to the realization – a week later – that no large hedge fund was about to blow up, despite the earlier rumors that something bad was about to happen. Nevertheless, housing share prices also moved higher, including Hovnanian, which was up a pretty healthy 3.8% at around 2:00 PM Eastern.

As someone waiting for a fall in housing prices, I think a sharp rise in interest is needed to prick the real estate bubble and it is frustrating to watch yields on the 10 year fall day after day.