bonds Markets

It’s ‘August In Reverse’ As Bond Selloff Worsens

This comes with the obligatory caveat that a single tweet could send everyone scurrying to safety, pushing yields back lower.

This comes with the obligatory caveat that a single tweet could send everyone scurrying to safety, pushing yields back lower.
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2 comments on “It’s ‘August In Reverse’ As Bond Selloff Worsens

  1. “This comes with the obligatory caveat that a single tweet could send everyone scurrying to safety, pushing yields back lower.”

    You got it backwards H, a single reprieve could push people back to buying yields given where the yields where, whereas the non stop 3 years of tweets and counting are now the proverbial salt in the trade war inflicted wound that is pushing the world towards disaster, and it is the new normal. Caveat emptor indeed.

  2. This is bond rout reflects a market that got overbought combined with really poor technicals from heavy issuance. Bonds should find their footing after the US Treasury auctions and we’ll be back to a more balanced market albeit at more realistic levels. The real question is whether the front end of the US Treasury curve is telling you the Fed will cut twice more this year or if they are wrong and we will get fewer cuts. The long end is pricing in a very low inflation environment which currently appears correct.

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