bonds
[CNBC] Market rebound attempt fails as Dow closes in the red on Tuesday [Yahoo/Bloomberg] Oil Ekes Out Gain as Investors Focus on Supply Constraints [Reuters] U.S. corporate bonds perk up after stock selloff [Yahoo/Bloomberg] SALT Cap’s Temporary Repeal Is an Option, Menendez Say [AP] Tight job market is causing costs
[Yahoo/Bloomberg] U.S. Equities Gain as Global Stocks Rebound; Dollar Dips: Markets Wrap [Reuters] Asia markets, yuan fight to stabilise as Evergrande looms large [Yahoo/Bloomberg] Evergrande Tumbles Further After S&P Says Default Is Likely [Reuters] Dollar holds gains, yuan under pressure as Evergrande risks grow [Reuters] U.S. housing starts beat expectations
According to one estimate, by Deutsche Bank’s Jim Reid, a whopping 85% of the U.S. high-yield bond market currently yields below the annual inflation rate. It’s important to note that this figure has never been above 10% in the past. Even if the consumer price
U.S. Treasury bonds experienced a bear market and added selling pressure following the coronavirus flash crash as bond yields bottomed in early 2020. The move higher in yields since then peaked early this year, taking some pressure off bonds. But if yields should move higher
2021 has been a great year for equity investors. The Nasdaq 100 and S&P 500 ETFs are up between 20% and 25% on the year! But while it’s felt like a risk-on kinda year, there’s been one missing ingredient: Junk bonds. Something Isn’t Quite Right In
The above graph from the St. Louis Fed’s database shows the option-adjusted-spread (OAS) on the investment-grade or high-grade corporate bond index, and presently the spread is about 95–100 bp’s better than the equivalent Treasury. This chart, also from the St. Louis Fed website shows the
A busy summer on the fiscal front in Washington that’s seen progress on budget and infrastructure legislation could soon give way to another showdown over the U.S. statutory debt ceiling, potentially signaling volatility for investors in the months ahead. The Senate recently passed a $550
10-Year Treasury Note Daily Chart. We have a big week in financial markets. and the bond market and currencies are consolidating. Specifically, the has been developing a triangle consolidation for the last couple months. And while it is trading below its 200-day moving average (which
In our baseline forecast, the recent decline in U.S. Treasury yields will reverse somewhat, as some of the near-term factors pressuring yields lower ebb. Yet we acknowledge the risks that yields could well fall further. Looking long term, we expect yields in developed countries to
The Federal Reserve continues to prepare for the next liquidity disruption. We think their latest facility would likely help, both psychologically and practically. The Fed on 28 July announced the creation of a permanent standing repo facility (SRF) that will help provide financing for holders