1190 days ago
The 2020 money supply explosion
QE galore. Money supply +$14t. Reach for yield drove EVERYTHING. Stocks OUTPERFORMED economies. Even INSOLVENT firms couldn't default.
1193 days ago
Bond ETF tracker year to date
WSJ tracker shows negative HY corporate bonds at the bottom, and 20+ years US treasuries on the rise.
1197 days ago
10 year treasury yields timeline
The vaccine, trade deals with Brexit, Stimulus package have all contributed to a bond sell off and an increasing yield. See for yourself. Source: Bloomberg
1198 days ago
Italy's bond yield attracts
Italy is the EU's best-performing debt market this year as yields hit lows thanks to the European Central Bank's $2.3 Trillion pandemic asset purchase program. Italian 10-year yield premium over the German bund is a preferred trade for the next year. Commerzbank chief say he is bullish on the spread and calls the trade a high up in an otherwise low-return environment. The ECB is keeping rates and debt service costs low which makes the debt levels sustainable and offers decent yield. Italy's 30 year bonds however pay the highest rate for the tenor among developed markets and some argue buying 30 years bonds and selling German bunds equivalents while doing the inverse with 10 year bonds. Source; Bloomberg
1198 days ago
US real yields are approaching fresh new lows again
A major macro driver for precious metals. To put things in perspective, U.S 10-year real rates fell as much as -5% in the mid-70s. This was at that time a major tailwind for Gold and Precious metals - source: Crescat Capital.
