1113 days ago
Bond market calls Fed's bluff - US 10 year Treasury hits 1.75%
If the Fed and the market were a puppet show - it would go something like this....
1113 days ago
Rush to the Eurozone government debt
There has been a rising demand for eurozone sovereign bonds. We still need to note that the real scale of demands for bonds is harder to identify, as the ECB asset purchases largely inflated traditional measures: do orders really reflect the demand for bonds? If it was the case some years ago, earlier this year, we have seen some orders fleeing books as governments sought cheaper borrowing costs.
1113 days ago
Post-FOMC, the market is pricing in: 1) short-term inflation burst and then 2) some serious disinflation (the 5Y-10Y Breakeven spread is at record negative levels)
Source: www.zerohedge.com
1114 days ago
The current bond market a flashback to 2013? - Capital Economics
Capital Economics compares the current rise in bond yields with the taper tantrum of 2013. Their conclusion -- Unlike during 2013’s “Taper Tantrum”, we think that Fed policy will prevent a further sell-off in US Treasuries from leading to a broad-based rout in “risky” assets anytime soon.
1116 days ago
Keeping a lid on US bond yields?
US yields are generally still lower than before the Covid, but FX-hedged returns are now at their highest in years for foreign buyers. A German investor, for example, will get a 10-year bond yield of -0.3% at home, but 1.0% if they buy it in the US and hedge it in euros. This could make a crowd of foreign investors entering US bond yields and keeping these in check.
