FlowBank

1176 days ago

Spread between German and Spanish bonds diminishes

According to The Financial Times, ''The record demand for the Spanish bond underscores the strong start to the year for bonds in the euro area’s so-called periphery, its riskier sovereign borrowers, against a broader sell-off in fixed income markets. Spain’s 10-year spread — the additional yield demanded by investors to hold Spanish debt rather than its ultra-safe German equivalent — earlier this week hit its lowest level since before the region’s debt crisis a decade ago, reaching just below 0.55 percentage points.'' @TommyStubbington

#Bonds

1178 days ago

China will become next financial hub according to Ray Dalio

Much like the transition from the Dutch to the British to the American empires, the next in line according to Dalio is China. Chinese government bonds offer higher yields than developed countries' debt. The IMF stated China's GDP growth rate at 1.9% in 2020 while other developed nations trailed behind thus giving China more reasons for asset re-allocation. See the CSI 300 index price surge. Source: FT 

#Stocks #Bonds

1178 days ago

This explains why EUR/USD is rolling over right now

The reflation trade looks more powerful in the US than Europe if judged by the rise in yields, which are rising quicker in the US than in Germany.

#Bonds #Macro
This explains why EUR/USD is rolling over right now

1178 days ago

Chart of the day: the U.S yield curve continues to steepen, with 2s30s at its steepest since April 2017...

Source: www.zerohedge.com 

#Bonds
US yield curve 2s30s

1179 days ago

2.5% tech earnings 'yield gap' could tank the stock market

"Since early 2018, a rise in the long bond yield has sent shudders through the stock market on four occasions: February 2018, October 2018, April 2019, and January 2020. On all four occasions, the tipping point was the earnings yield premium on tech stocks versus the 10y T-bond yield falling towards its lower limit of 2.5 percent.”

#Stocks #Bonds
2.5% tech earnings 'yield gap' could tank the stock market
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