Harvard Business School (April 15)
“Traditionally, investors have accepted a lower yield—or interest rate—for Treasuries because of their perceived safety and liquidity. Buy a Treasury and you could sell or pledge it almost instantly for cash anywhere in the world. Today, that ‘convenience yield’ has disappeared amid record US debt.” Two factors, namely “scarcity in dollar lending” and “oversupply of Treasuries” are creating a divergence in the value of the dollar, which continues to command a premium, and the value of Treasuries, which have “lost their special premium relative to G10 bonds, and have less of an advantage against emerging market bonds.”
Tags: G10 bonds
Fortune (April 14)
“The White House promised a manufacturing renaissance. Instead, the factory floor keeps shrinking…. During Trump’s first year back in the White House, the manufacturing sector alone shed 108,000 jobs—even as the administration touted a coming ‘manufacturing boom.’” The trajectory has not improved. As of this March, there have been about 150,000 net job losses per year in the manufacturing and construction sectors.
Tags: 150k, Construction, Factory floor, Job losses, Manufacturing, Manufacturing boom, Renaissance, Shrinking, Trump, White House
