OUTLOOK

"Forecast: Right on Target"

5/1/2007

In our Outlook on 3/6/07, we stated, "We believe the yield on the 10-Year Treasury Note will rise to 4.65% or more within the next 8 weeks."  On 3/6/07, the 10-Year Treasury yield was hovering around 4.5%.

Our forecast was correct.  Within 8 weeks, the 10-Year Treasury yield rose to 4.65% or more, reaching a high of 4.76% on 4/13/07.

Mark Yuan, CFA