847 days ago
Germany's 10 year inflation-linked bond yield falls to record low at -2.1%. It suggests markets expect inflation to come down from the high levels witnessed this year. Germany's bonds are typically seen as "safe-heavens" in Europe. Positive news around a faster re-opening (stimulates growth), should reduce deflationary pressures.
874 days ago
Trading conditions in Treasuries are the worst since March 2020. Bond traders around the world are trying to force central banks to respond to elevated inflation rates, creating unusually high price swings. This instability gave way to a vicious circle where the reluctance to participate impairs liquidity, making price swings ever more likely. Source: Bloomberg
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882 days ago
The Fed showed resilience in the face of our current economic situation, deciding to slow down bond purchase, leaving eventual interest rates hikes aside, and seeing inflation as transitory. They noted that they would not hesitate to use their tools if the situation were to change. Source: Fed, FT
883 days ago
As we're seeing a small decline in the difference between the two yields, we can see that a rates hike is expected and that the long-term growth confidence might be decreasing in the markets. Source: Bloomberg, Flowbank
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885 days ago
Traders have been shorting their 10 year treasury bond positions because rising yields erode the present value of bonds. @Bloomberg, FlowBank
