OTCRIDER
8年前
Treasury yields log largest weekly jump in 6 weeks
Treasury prices fell this week, pushing yields up by the largest amount in six weeks, after improving economic data along with a record-setting rally in equities prompted investors to sell government debt.
...Fed policy makers have shown through consistent communications that they “have a bias towards raising rates,” said Jason Browne, CIO at FundX Investment Group.
So, even though headline CPI at 1% “gives [policy makers] an excuse to wait” the current level of historically low Treasury yields “reflect an excess of pessimism on the economy,” Browne said, which suggests yields should continue to move higher in the near future.
http://stream.marketwatch.com/story/markets/SS-4-4/SS-4-114134/
OTCRIDER
9年前
Chart 8: IG Corporates and Govt. Bonds Rallied Strongly After 1932
http://seekingalpha.com/article/3987056-u-s-treasury-yield-curve-nulls
....For example, author Russell Napier has written extensively about what happened to various asset classes in the Great Depression (cf. Napier, 2007; Anatomy of the Bear: Lessons from Wall Street's Four Great Bottoms, 2 nd Edition, Harriman House Ltd., Peterfield, Great Britain, 304p). Obviously, stocks sold off catastrophically, but the more interesting asset classes are investment grade corporate and government bonds. Government bonds initially rallied during the period from September 1929 to June 1931. However, once the banking crisis began and the government abandoned the gold standard (note that the modern day equivalent would be the disbanding of the Eurozone), government bonds actually sold off. Bonds finally stabilized once the Reconstruction Finance Corporation was established in January 1932 (Chart 7). Investment grade corporate bonds sold off massively after September 1929, but then recovered and made great gains side-by-side with government bonds from 1932 onwards. Stocks also bottomed in the summer of 1932, rallying strongly until the second dip of the Great Depression began in August of 1937.