Treasury Bonds Tag

Flattening Yield Curve and Strong Dollar go Hand in Hand

27 Aug, by Knowledge Leaders Team in Uncategorized

With today’s action in the bond market (30-year treasury yields made new 1-year lows, finishing down 6bps, and 10-year treasury bonds nearly made new 1-year lows, finishing down 4bps), the long end of the yield curve is the flattest it’s been since the fall of...

Treasury Bond Yields Keep Falling as Taper Continues

18 Aug, by Knowledge Leaders Team in Uncategorized

Despite today’s modest uptick in treasury bond yields, the downward trajectory in yields coinciding with the Fed’s tapering of asset purchases remains firmly intact. Admittedly we’ve been harping on this point now for months, so we’ll keep this post short and sweet....

Treasury Bond Yields Still Catching Bid in Line with Slowing QE

29 Jul, by Knowledge Leaders Team in Uncategorized

Last week we wrote that the bond market is following perfectly the reduction of QE with new 1-year lows and with today’s bond moves that trend is still firmly in place. In what may seem counter intuitive, treasury bond yields have had a high positive correlation...

Gold and the Yield Curve Are Confirming Each Other

30 May, by Knowledge Leaders Team in Uncategorized

A few months ago in a post titled, ”How Bullish is a Bull Flattener?” we took a look at how bull flattening of the yield curve (when the long end falls faster than the shorter end) has tended to impact various assets....

Bond Yields Approaching 1-Year Lows

28 May, by Knowledge Leaders Team in Uncategorized

The US 10-year bond has dropped by 8 bps today and has slammed through what was looking like support around the 2.50% level. If it closes at current levels than this will be the lowest close since 6/20/13. The 30-10 spread has widened by 7...

It’s a No Taper Day Today on Wall Street

22 Nov, by Knowledge Leaders Team in Uncategorized

Despite Fed minutes that left the door open to a December taper contingent on better economic stats, the markets are taking the relatively upbeat data over the last two days in stride....

Risk is On as France Gets Downgraded

08 Nov, by Knowledge Leaders Team in Uncategorized

We find it interesting that on a day when the French government gets its credit rating downgraded the spread between French OATs and US Treasury Bonds widens to the highest level since April 2010, with OATs now yielding 52bps less than USTs. This spread can...

Treasuries Yields Slammed Lower as Safe Havens Catch Bid

22 Oct, by Knowledge Leaders Team in Uncategorized

10 year treasury yields finished 9bps lower on the day today hitting the lowest level since mid-July while gold, silver, copper and the euro all caught a decent bid.  The divergence between S&P 500 futures and the 10 year note is now at the most...

Stronger USD or Higher Inflation Expectations?

21 Oct, by Knowledge Leaders Team in Uncategorized

Over the last four years, the derived inflation expectation of 30 year US Treasury bonds have moved in tandem with US Dollar.  When the USD falls, inflation expectations rise, and when the USD rises, inflation expectations fall. Since mid-September, the US Dollar Index has fallen...