Will interest rates rise soon?

[Ktoyou]

[video]http://video.cnbc.com/gallery/?video=3000520551[/video]

Bank stocks are saying it's more likely that Federal Reserve officials will decide to increase interest rates in a few weeks.

Over the last two weeks, Goldman Sachs, JPMorgan Chase and Wells Fargo saw stock prices appreciate at an accelerated pace compared to that of the S&P 500. That's even factoring in financials' decline Thursday.

It's making some Fed-watchers think the market is finally ready to see rates rise again. Between reassuring data including retail figures and home sales, economists and analysts are yet again revising predictions about what the Federal Open Market Committee will do, and when.

"It's making markets think the Fed can go sooner," Deutsche Bank chief U.S. economist Joe LaVorgna said. "The likelihood of more than one move has increased."

Some are saying bond funds will, be risky business, and the best bet is short term bonds, laddering to longer terms. I disagree

Just a month ago short term bonds were doing well "The yield for two-year Treasury notes rose to as much as 0.912 percent, the highest since March 16. Yields on three-year notes rose to 1.085 percent, the highest since March 23." http://finance.yahoo.com/news/treasuries-short-dated-yields-highest-195535677.html

Short-term Treasury yields posted their largest one-day drop in nearly a month on Thursday as weakness in core durable-goods orders stoked renewed skepticism that the Federal Reserve could raise interest rates this summer, as several officials have suggested.

http://www.marketwatch.com/story/tr...-up-new-debt-ahead-of-fed-speakers-2016-05-26

High yield bond funds remain strong, while intuition seems to counter this.

Interest rates are likely to raise one quarter percent in June, or perhaps July.

 

[theophilus]

Audit the Fed.