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Wednesday, December 08, 2010

Now i am just guessing here but the 10 year yield is soaring up 10 basis points to 3.26% while the 30 year is at 4.40% and is actually flat from yesterday's 3pm close. If you ask me they are selling the 10 year to create demand for the auction. So my feeling is that they will rally the 10 year on the auction results unless they are an absolute disaster; in which case they will then rip the 30 year apart and drive the yield up there. All this will play out at 1pm when the auction results come out.

The yield rise is beginning to take its toll on MLPS as the index is down over 2.50 points and the dow is dow 25 points. Nothing tragic mind you but they are paying attention to whats going on with rates. Most of the group is down. Atlas Pipeline (APL) and Natural Resource (NRP) among the biggest losers today. Anything coal related is taking a hit in the broad market so that might be adding pressure to some coal mlps, although the nat gas end of it is up nicely. Nat gas is up 14 cents right now. On the winning side Transmontaigne (TLP) and Amerigas (APU) are up 50 cents but they are the exceptions in a weak mlp tape.

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