Tag Archive: bond yields

Negative Yields on the Rise

The German Government bond recently sank back below the 0% threshold for the first time since 2016. The decline in yields is part of an overall trend as investors become increasingly skittish about the prospects for the global economy. According to a recent article from MarketWatch, “the total sum of negative-yielding debt in bond issues represented in the Bloomberg Barclays Global Aggregate Bond Index stood at nearly $9.7 trillion, marking a more than 50% increase from September.” The recent decline in German bond yields put... Continue Reading

Not So Fast…

The sharp rise in bond yields has been the topic of much discussion over the last week, and yields have a lot of room to run even higher. The movement in the bond market has not gone unnoticed by equity investors, and stocks saw some significant selling last week as a result. To be clear, it is not necessarily the rise in yields that has investors upset. Rather than focusing on a specific level in rates, investors are likely far more concerned with the speed... Continue Reading

A Shot Across the Bow

Stocks are getting hit today, and hard, as rising bond yields fuel selling in equities. The recent concerns over higher yields-which are trading at multiyear highs-is only one issue that stock investors will need to contend with in the months and years ahead. None of this is to say that stocks cannot keep going higher, in fact, stocks may very well see a fresh leg higher and new all-time highs going into the end of the year. Once the levee breaks, however, look out below.... Continue Reading

Is The Trump Trade Being Unwound?

Not to beat a dead horse, but recent price action in key markets begs the question of whether or not the Trump trade has finally run its course. Since Trump’s Presidential election victory in early November, many markets have done the exact opposite of what many analysts were calling for. Stocks have rocketed higher while bonds have been pummeled. The dollar index has also risen sharply in the last several weeks as rates have been on the rise. Optimism over possible tax cuts and a... Continue Reading

Are Gold Investors Watching the Right Market?

The stock market is frequently mentioned when gold is discussed in the financial media. This makes perfect sense, given the fact that gold is often bought during times of market duress and may underperform when equity markets are headed higher. Although stocks remain not far from recent all-time highs, there could be something even more critical to financial markets in the near-term. The yield on the 10 year note is not far from crossing an important line. World renowned money manager Bill Gross believes that... Continue Reading