What is moving this week? Our weekly eyeball into the different markets. Interest rates likely to be breaking its all time high again, get ready for another volatile month ahead. Difference between yield and interest rate: Borrowers take reference from interest rates and lenders take reference on the yield. Interest rates and yield moves in tandem. Minimum...
In this video I cover the divergence between the 2 and 10 year treasuries and the recent FOMC press conference language. Jerome Powell is promising one thing (continued rate increases), while the bond market seems to be claiming otherwise (Fed pause incoming). Who's right? Let's take a closer look.
In recent weeks, the bond market has been sending a strong signal to the Federal Reserve: it may be making a serious mistake. The yield curve, which measures the difference in interest rates between short-term and long-term bonds, is currently more inverted than it has been since the early 1980s. An inverted yield curve occurs when short-term interest rates are...
In this video we discuss the current macro economic problems facing the Bond market and anticipate that regardless of what happens we will see dislocations (volatility) in a number of different markets. The problems with Japan stems from their monetary policy to implement Yield Curve Control (YCC) where they are committed to keeping their interest rates between...
I've set out what I see as the major topic of conversation / concern thats in financial markets currently as we approach the key resistance level of 1.5% in US 10Y Yields.
How to easily understand the yield curve inversion. I also show you a method to plot the difference between the bond yields.