Zeev's Turnips Patch-No Politics (ZEEV)

[SteveO]

A bit of rate hike would not effect long-term rates at all. It might even reduce them. Bill Gross actually elucidated this theory based on rolling down of yields by bond traders. Interesting.

http://www.pimco.com/bonds_generic_frms.asp?cont=/ca/bonds_public_arch.htm

Your theory is good common sense. People keep waiting for money to get cheaper. When there is a threat of rates going higher, then the borrowers really jump on board.