Treasuries Drop on Bets Congress May Reach Budget-Deficit Deal – Bloomberg 12-31-12

Salient to Investors:

Economists expect the 10-yr Treasury yield to end 2013 at 2.17 percent.

Bill Gross at Pimco expects Treasury 5-yr notes to yield 0.7 percent at the end of 2013 versus 0.72 percent today, and the dollar to decline and oil climb above $100 in 2013. Gross expects stocks and bonds to return less than 5 percent in 2013 and unemployment persist at 7.5 percent or higher.

David Ader at CRT Capital said the returns produced by the 30-yr bull market in fixed-income won’t repeat because it is mathematically impossible.

Read the full article at http://www.bloomberg.com/news/2012-12-31/treasuries-decline-on-speculation-deficit-cut-deal-may-be-found.html.

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