July 28th, 2003

Market Commentary

The Treasury Yield Curve Continues to get steeper and widen.

As we come to the end of July, the Treasury Yield Curve has become even more dramatic.

6 Month T-Bill .92%
2 Year T-Note 1.60%
5 Year T-Note 3.14%
10 Year T-Note 4.30%
30 Year T-Bond 5.22%

As the yield curve gets steeper and more dramatic, this only reaffirms my belief That the US Economy is poised for a multi year period of growth and higher interest rates. It is my belief that short-term yields will face the most dramatic change over the next 18 months. Therefore, the Treasury yield curve will flatten out over the next 18-24 months.

Sincerely,

Sam Clem
Clem Investments

Past Commentaries:
July 2, 2003