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Us Treasury Bonds

All articles tagged with #us treasury bonds

finance1 year ago

Bond Market Braces for High Rates Amid Political Uncertainty

US Treasury bonds have surged to local highs, raising concerns among analysts about potential recession risks. The rise follows disappointing nonfarm payroll data and increased economic uncertainty, with gold prices also reaching new highs. Analysts, including Michael A. Gayed, have expressed alarm over the bond market's movements, suggesting that high inflation, Federal Reserve interest rates, and geopolitical tensions may be contributing factors. Additionally, significant insider trading by major company executives and foreign countries selling US debt further highlight market apprehensions.

via Finbold - Finance in Bold|
#economic-concerns#finance#financial-markets
finance2 years ago

Reevaluating the Safety of U.S. Treasury Bonds

U.S. Treasury bonds, often considered the safest asset, have actually performed poorly for nearly two generations and continue to underperform. Investments in 10-year Treasury notes have lost a third of their value in real terms in just over three years, and long-term Treasurys have lost about half their value. They have consistently failed to keep up with inflation since 2008 and have been a worse investment than gold bullion. The U.S. government's massive budget deficits and increasing national debt, coupled with the need for inflation to reduce the debt burden, suggest that inflation is the only way out of the current economic conundrum. As a result, investors in Treasury bonds may face significant losses, and corporate bonds also face challenges. In this scenario, assets such as energy stocks, agricultural and mining stocks, real estate, and gold may perform well, while long-term Treasury bonds are unlikely to be a safe or risk-free investment.

via MarketWatch|
#budget-deficits#federal-debt#finance
finance2 years ago

US Treasury Market Experiences Historic Losses in 250 Years

US Treasury bonds are on track to experience their longest stretch of losses since 1787, with the 10-year bond set to suffer its third consecutive annual loss. The decline in bond prices has been driven by aggressive interest rate hikes from the Federal Reserve, with the effective fed funds rate rising from nearly 0% to over 5% since March 2022. Despite the poor performance, investors continue to pour money into bonds, with $1.7 billion flowing in this week, marking the 23rd consecutive week of inflows.

via Markets Insider|
#federal-reserve#finance#inflows
finance2 years ago

"Surging Treasury Yields Reflect Revised Q1 GDP Data"

U.S. Treasury yields surged after the release of revised Q1 GDP data, which showed a 2% increase, surpassing the consensus of 1.4%. The U.S. 30-Year Treasury yield rose by 9 basis points to 3.89%, the U.S. 10-Year Treasury yield increased by 12 basis points to 3.83%, and the U.S. 2-Year Treasury yield jumped by 15 basis points to 4.87%. The inverted yield curve also widened, reaching levels not seen since 1981. The rise in yields pushed down U.S. Treasury bonds, while boosting the dollar.

via Seeking Alpha|
#finance#gdp-data#inverted-yield-curve