The Monetary Model

The Ingredients

Just two items of data are required to maintain the Monetary Model. These are the yields each week provided by two intermediate U.S. government notes: thethree-year Treasury note and the five-year Treasury note.

These yields are widely available in the financial press and over the Web. The Barron’s financial weekly newspaper carries them in its “Market Laboratory” section, which also contains data related to various stock market indices, as well as market breadth and prices of individual securities and mutual funds.

The January 5, 2004, issue of Barron’s reported the following data for the week ending January 2, 2004.

Adjustable Mortgage Base Rates
 January 2, 2004December 26, 2003December 27, 2002
3-year Treasury ...

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