Municipal Bond Forum

Rate hikes?

Q

At the start of Greenspan’s interest rate hikes, when the masses were calling for higher interest rates on bond yields, you were right when you stated that you would not be surprised if yields peaked. Now that it seems that the masses are lowering their yield expectations, I’m curious to know whether you think we might see higher rates again.

A.C., New Jersey

A

James A. Klotz responds:

Right now we don’t see anything on the horizon to make us expect higher long-term interest rates. However, we are a bit uncomfortable, with all the recent company.

May 20, 2005

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