The problem now is long-term interest rates.
Both the Treasury and the Fed are selling long dated securities.
If foreign holders of this debt start selling in advance of these sales, this could get ugly.
I'm looking for a major position on the short side for bonds.
* * * * * J B K * * * * *
San Francisco
The Institute for Supply Management's index of non- manufacturing businesses, which make up almost 90 percent of the economy, rose to 53 from 50.5 the prior month. The February figure exceeded the median forecast for a gain to 51, according to a Bloomberg News survey of economists. Readings higher than 50 signal growth.
The factory rebound that helped the economy emerge from the worst recession since the 1930s is starting to generate improvement in other industries, giving a boost to companies such as Macy's Inc. The group's measure of employment rose to the highest level since April 2008, signaling the economy may be on the cusp of creating the job growth necessary to encourage spending.
http://www.bloomberg.com/apps/news?pid=20601068&sid=arfxuMKNNmTw
