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Wall Street Journal (February 17)

2024/ 02/ 19 by jd in Global News

“Treasury yields have sprung to multiyear highs, forcing the U.S. government to pay a lot more in interest and putting pressure on the budget.” Over the new decade, federal interest costs are now expected to rise by $1.1 trillion, reviving “Wall Street worries that the years-long acceleration in borrowing under both political parties will eventually weigh on economic growth and asset prices.”

 

Financial Times (December 16)

2023/ 12/ 17 by jd in Global News

“European bonds rallied on Friday, pushing yields to nine-month lows as investors focused on the latest signs of a slowing economy and shrugged off the European Central Bank’s insistence that it was not considering interest rate cuts.” Given the Fed’s pivot, markets appear skeptical of “ECB president Christine Lagarde’s insistence on Thursday that it was too soon to talk about the timing of rate cuts and that the bank had ‘more work to be done’ in its battle to tame inflation.”

 

Bloomberg (December 1)

2023/ 12/ 01 by jd in Global News

“For all the bullish milestones notched by November’s big market surge, recent history offers Wall Street a lesson in caution. Time and time again, speculation breaks out that the Federal Reserve is poised to ease monetary policy soon enough — spurring even cautious investors to erupt in a spasm of cross-asset buying. Stocks jump, bond yields fall, and a dash ensues among equity speculators into shady corners encompassing everything from meme fliers to crypto and profitless tech.”

 

New York Times (October 20)

2023/ 10/ 20 by jd in Global News

“One of the most important interest rates in the world this week flirted with a level it hadn’t reached in more than 16 years, putting pressure on the economy and the stock market.” Yields on 10-year Treasuries “brushed against 5 percent for the first time since mid-2007 before ending the week around 4.9 percent.”

 

Wall Street Journal (October 9)

2023/ 10/ 10 by jd in Global News

“Investors worried about the recent pullback in stocks are counting on the coming earnings season to give them something to get excited about. For much of 2023, U.S. stocks roared higher despite lackluster corporate profits. But an accelerating selloff in bonds has pushed longer-term yields near their highest levels in more than a decade, denting enthusiasm for stocks.”

 

Investment Week (June 12)

2023/ 06/ 13 by jd in Global News

“Earlier this month, US Federal Reserve Chairman Jerome Powell said he does not expect inflation to decline quickly, signalling resistance against the market consensus. We believe it would have to be a severe economic recession for the Fed to begin cutting interest rates before the end of the year, as is currently priced in by the forward markets. Therefore, we believe, interest rates will remain ‘higher for longer’. This is inherently positive for MMFs, where yields and total returns are driven for the most part by central bank rates. A higher-for-longer interest rate trajectory could potentially yield 4.5% to 5% for MMFs in US-dollar terms in the next three, six and 12 months.”

 

Financial Times (January 14)

2023/ 01/ 15 by jd in Global News

“Since the Bank of Japan stunned markets by widening the band of its yield curve control (YCC) policy on December 20, markets feel things are now moving tectonically for one of the developed world’s most unorthodox financial regimes.” At long last, the ‘widow-maker’ trade “is making money. On Friday and for the first time in almost a decade, yields on the benchmark 10-year JGB rose to 0.53 per cent and, critically, outside the BoJ’s target band in defiance of its ever more desperate efforts to fight the market.”

 

Forbes (June 28)

2022/ 06/ 30 by jd in Global News

“The question on everybody’s mind in the crypto world is whether we’ve reached the market bottom. Nearly $2 trillion in crypto market value has evaporated since November…. But the fallout is far from complete.” With over “600 crypto exchanges around the world operating in a largely unregulated frontier,” there are others that are already insolvent. Many promised unreasonably high yields, which “worked fine when crypto was going nowhere but up. It looks disastrous now.”

 

The Economist (November 6)

2021/ 11/ 07 by jd in Global News

“Global bond markets are wakening from a long slumber.” The Fed “will wind down its vast bond-buying programme” just as bond investors react to higher inflation. “Across a group of 35 economies, five-year bond yields have risen by an average of 0.65 percentage points in the past three months.”

 

Wall Street Journal (October 3)

2018/ 10/ 05 by jd in Global News

“Investors propelled bond yields to multiyear highs Wednesday as robust economic data and an easing of trade tensions across North America sparked fresh optimism about the global growth outlook. Wednesday’s bond rout sent the yield on the 10-year U.S. Treasury note, a closely watched barometer of investors’ sentiment toward growth and inflation, to its highest level since July 2011.”

 

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