FlowBank

938 days ago

Yields on China junk bonds blowout

A practical example of the Dollar Milkshake Theory -  Yields on China Junk DOLLAR Bonds... Foreign bond holders need USD to pay back debt so demand rises for USD - often with yields. China can devalue their currency to buy USD to pay debt but that bids up the USD!

#Bonds
Yields on China junk bonds BLOWOUT

938 days ago

What will ECB tapering mean for the DAX?

ECB to detail bond purchases & the markets will follow the decision closely b/c, for example, the Dax runs in tandem w/ECB balance sheet.

#Bonds #Forex
What will ECB tapering mean for the DAX?

939 days ago

El Salvador's bond markets see a sell-off as yields spring

El Salvador’s entire yield curve has now inverted, meaning bonds with near-term maturities are yielding more than debt that’s due further out. That’s generally considered a bad sign as it means investors see shorter-term debt as riskier, and most yield curves will slope upwards given the inherent uncertainty of pricing things over the longer-term. The move towards inversion appears to have begun in June, when the law to adopt Bitcoin was passed. @Bloomberg

#Bonds

940 days ago

JPMorgan bets its own money on European Junk Bonds for the first time
As it bets on continued loose money and temporary inflation, JPMorgan Chase & Co. has committed more of its balance sheet to European junk bonds and loans than ever before. So far in 2021, the bank has sponsored 43 agreements, the largest on record, and its bridge loan book is at its highest level since the global financial crisis. As investors pour record amounts of money into the market, junk bonds in the U.S. and Europe are topping gains in fixed-income markets tracked by Bloomberg this year, up 4.7% and 4.5%, respectively. @Bloomberg
#Bonds

940 days ago

In the midst of a flood of supply, global bond markets are under pressure

In the U.S. and Europe, a selloff in rates markets is deepening due to a flood of new bond supply. The cost of borrowing in the U.S. has risen to its highest level in more than a week, ahead of the sale of $120 billion of debt on Tuesday. Before the issuance of a new green security on Wednesday, German 10-year rates soared to a seven-week high. In the United Kingdom, benchmark rates hit a new high this month after the government auctioned off four- and 50-year debt. @Bloomberg

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