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Thread: Bond Market

  1. #1
    Join Date
    Jan 2017
    Posts
    4,132

    Default Bond Market

    Global bonds go in lockstep.

    If bonds in one country go down, bonds in other countries
    will go down too.

    Treasury Yields go up as:
    ----the Fed hikes the rates
    ----foreign buyers and foreign governments sell Treasuries
    ----bonds go down in other countries (ie yields go up there)

    USA exports inflation in other countries, but other countries
    export inflation to USA too.

    If bonds (Treasuries) go down in USA, it is not good to buy
    bonds(Treasuries) in other countries, because there is a high
    correlation between bond markets worldwide.

    https://www.theglobeandmail.com/inve...nvestors-risk/

  2. #2

    Default

    Might increased interest rates give influence back to the Bond Vigilantes of the past?

    These folks seem to think so - https://www.marketwatch.com/story/th...?mod=home-page
    “The Federal Reserve is not currently forecasting a recession.”
    Fed Chairman Ben Bernanke, January 2008
    This is no longer posted in the Fed Minutes of January 2008, but still quoted here - https://www.nbcnews.com/id/wbna22592939. The FOMC minutes still quote MR. Reifschneider. as stating the same thing.

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